Propose changes to existing government economic regulations

Solution

The existing government economic regulation have esclated the cost of medical care expenses. As an impact of the current regulation where restrictions were imposed in the supply of doctors and health care centres, the expenses on medicare are doubled. Thre medical care price index was found to be far more higher than the consumer price index. The government justifies its regulation by stating that more the number of doctors more will be the consumption of unimportant medicines as the doctors can convince the ignorant and desperate patients to buy more medicines which may actually be not mandatory. Although the government have taken steps in controlling the price hike by giving subsidies and margin rates it has helped the price hike very little. The middle class still find the medicare expenses unaffordable. Changes in the government regulations has become inevitable as the citizens of the nation has the right to get proper medicaion in reasonable rate. The changes that the government can adopt to control this crisis are:

1. Increasing the supply of doctors and hospitals: By doing so there would be an increase in the flow of medicines and the pharma will have to supply the medicines in competitive prices.In contradiction to the governments statement that the patients will be misleaded by the doctors to buy all the medicines they prescribe, the patients will have the choice to get opinion from other doctors and it solely depends on the patient to decide whether to go for the medicines or not.

2. By reducing tax on medicines. By imposing this method the prices on the medicines can be brought down. In other words, the goverment is indirectly taking care of its citizen at governments cost.

3. Quality control: There has to be strict rules on the pharma industry, by controlling the manufacturing of fake medicines and supply the health of the nationals are safegaurded in advance. The health issues an individual can have by consuming fake medicines and the expenses he have to bear in order to get well from it may actually be unaffordabel for the middleclass society.

4. Providing subsidies: Senior citizens and lower middle class are the most affected ones because of the rising prices in the medicare. Government can give subsidies to this criteria of people as there is no way for them to find money to meet the expenses.