Provide three rationales for government involvement in health care mar

Provide three rationales for government involvement in health care markets. Which is the most recent?

What will be an ideal response?

ANSWER

One rationale for government intervention into health care markets is in the area of contagious diseases. Since contagious diseases are a type of externality because one person does not take into account that if they get it they can easily spread it to others, it provides a rationale for government helping to control and prevent the spread of disease. A second rationale for government intervention is in the dissemination of health care information. This rationale has resulted in the regulation of physicians and pharmaceuticals. A third rationale for government involvement is that many individuals cannot afford or obtain health insurance, a growing problem as health care costs have increased.