Should We Pay to Visit the Doctor?
Should the NHS be free or should we pay to visit the doctor? An emotional issue, but what are the economic arguments?
Benefits of Charging for the NHS
- If it is free there may be overconsumption.
- It will reduce time wasters
- It will raise revenue for the government which can be spent on the NHS
Disadvantages of Charging for the NHS
- Health is a merit good, people underestimate the benefits of going to the doctor for screening; charging would put some people off.
- Health has positive externalities therefore will be underprovided in a free market.
- Demand for health care is inelastic, therefore charging may not reduce waiting lists
- Administration costs of collecting money
- Would lead to inequality
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