Question

Opportunity Costs: Explain whether private health care is more costly than public health care because private health care providers make profits.

Answer 1

Government policy is one reason why healthcare costs are rising. Providers have been able to increase rates since the beginning of Medicare and Medicaid programs that help people without health insurance. Factors linked to healthcare change over time: population growth Ageing Disease prevalence or occurrence Use of medical services Cost and cost

The rising cost of health insurance premiums for most people is at the root of questions about rising costs of health care. The average annual premium for family healthcare coverage rose nearly 5 percent in 2018 to $19,616, according to the National Conference of State Legislatures (NCSL). Among people on a private plan or insurance exchange, the average increase in premium costs in 2018 was $201. The two reasons most cited for these rises are improvements in government policy and lifestyle.

Provision of public healthcare ensures that everyone has access to this important public service. Left to the free market, there would be some who do not have and would benefit from private health insurance.
Health care is a good quality. People can underestimate the importance of consulting with a physician. This may result in some diseases going untreated and becoming more extreme and difficult to treat.
Private healthcare and state subsidies for poor and elderly people mean very high costs of administration.
Private healthcare insurance companies make a big profit, which means more expensive healthcare in nations like the U.S. that have private care.

When private insurance pays for health care. In fact, there is less mechanism to determine the cost / benefit of various treatments. Doctors are able to recommend expensive treatments that can do little to improve because insurance companies pay for the bill. There is a discipline in the public sector to stick within budgets and prioritize health care where it is most necessary.