Moral Hazard and Healthy Policy Essay

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Notably, a great percentage of American population is concerned with healthcare system. Over the past years, U.S has been trying to implement a universal insurance system for all citizens but all these efforts have failed. Instead, increased systems of complexity and dysfunctions have been the result. Studies have shown that America has few doctors compared to other developed countries. Despite all these efforts, Americans claim that they hardly get adequate medical attention that they deserve. For instance, admission to hospitals is rarely given to patients. As a result, life expectancy for Americans is quite low. In addition, rates of immunization among American children are as well low. The problems with America’s healthcare system can be said to be caused by political setbacks considering that the idea to create a universal insurance policy. This indicates that the idea has had substantial amount of support. This is because the push to implement the universal policy solely comes from organized labor rather than from the government. The failure to achieve such healthcare policies results from the fact that the organized labor groups pushing for policies work only through collective bargaining unlike other western countries such as Europe whose organized labor groups always have the support of the government. As a result, healthcare insurance has and will continue being an individual responsibility unless something is done to stop political battle in the healthcare system. This has prompted American economists to formulate an idea called moral hazard which explains other causes of healthcare dysfunction such as how different policy makers view the issue of insurance.

One of the popular healthcare policies grew due to the intuition that healthcare services should be availed in areas where there are children. This has resulted to creation of local and community health centers as well as the opening of public healthcare departments in schools and among the poor communities of the society. However, the implementation of these policies has drawn a number of moral concerns. For instance, the provision of healthcare services in schools without the knowledge of parents has raised concerns on children misusing drugs and other services such as use of condoms. The issue here is not merely the use of condoms itself but rather the encouragement to engagement of premarital sex by school children. To counter this possible effect, a welfare reform was implemented to promote abstinence in schools. Similarly, liberals proposed that school children and the youth should be provided with counseling services especially on drug abuse and sexuality. These concerns were further raised when the U.S. legislature proposed that privacy should be instilled in school healthcare services hence keeping away the parents’ participation in their children’s healthcare service provision. This is actually where politics become part of healthcare services which should be a private matter. Much impact comes from private companies which are likely to gain more profits without putting into considerations the welfare of the general public. Thus, the reformers make the use of this opportunity by altering the regularities of the providers through prohibition and control of the private providers. The cause of American politics in regard to healthcare services results from fears on moral values and aspirations. This is what causes seizure of healthcare provision. The result is powerful action by the public specifically on restrictions.

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IvyPanda. 2022. "Moral Hazard and Healthy Policy." April 26, 2022. https://ivypanda.com/essays/moral-hazard-and-healthy-policy/.

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IvyPanda. "Moral Hazard and Healthy Policy." April 26, 2022. https://ivypanda.com/essays/moral-hazard-and-healthy-policy/.

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