Allocative Policies

Allocative policies are designed to provide net benefits to some distinct group or class of individuals or organizations at the expense of others to ensure that public objectives are met. Such policies are in essence subsidies through which policymakers seek to alter demand for or supply of particular products and services or to guarantee access to products and services for certain people. For example, on the basis that without subsidies to medical schools, markets would undersupply the preparation of physicians, government has heavily subsidized the medical education system. Similarly, on the basis that markets would undersupply hospitals in sparsely populated regions or low-income areas, government subsidized the construction of hospitals for many years.

Other subsidies have been used to ensure that certain people have access to health services. The most important examples of such policies, based on the magnitude of expenditures, are the Medicare and Medicaid programs. Medicare expenditures exceeded $309 billion in 2005 and could reach $532 billion by 2013; Medicaid expenditures exceeded $319 billion in 2005 and could reach $628 billion by 2013 (Heffler et al. 2004). As noted earlier, Appendixes A and B contain descriptions of the Medicare and Medicaid programs. Additional information about the Medicare program is found at http://research.aarp.org/health/fs103_medicare.html#pdf and at http://www.kff.org/medicare/index.cfm and about the Medicaid program at http://research.aarp.org/health/fs102_medicaid.html and http://www.kff .org/medicaid/index.cfm.

In addition to the massive Medicare and Medicaid allocative policies, federal funding to support access to health services for Native Americans, veterans, and migrant farm workers and state funding for mental institutions are other examples of allocative policies that are intended to assist individuals in gaining access to needed services. Some think of subsidies as reserved for people on the basis oftheir impoverishment. However, subsidies such as those inherent in much ofthe financial support for medical education, the Medicare program (the benefits of which are not based primarily on the financial need of the recipients), and the exclusion from taxable income of employer-provided health insurance benefits illustrate that poverty is not a necessary condition for the receipt of the subsidies available through the allocative category of health policies.

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Responses

  • Kidane
    What is allocative health policy?
    4 years ago
  • margaret
    Is medicare allocative policy?
    4 years ago
  • FULGENZIA
    What is allocative policies (longest)?
    4 years ago
  • Emilia
    Is medicare an allocative or regulatory policy?
    4 years ago
  • Sam
    What are allocative health care policy?
    4 years ago
  • Deandra
    What are allocative public policies?
    3 years ago
  • Michelle Eichel
    What is allocative vs regulatoy?
    3 years ago
  • frances
    What is health care allocative policieas?
    3 years ago
  • leah
    What is allocative health policies?
    3 years ago
  • ralph gersten
    What are examples of allocative policies?
    2 years ago
  • semolina sandheaver
    Are medicare and medicaid allocative or regulatory policies?
    2 years ago
  • olivier
    Are veterans benefits allocative policies?
    2 years ago
  • Alfrida
    Is the construction of a hospital an example of allocative policy?
    2 years ago
  • brett
    Who do allocative policies in healthcare help?
    2 years ago
  • zach
    What are allocative policy and its examples?
    2 years ago
  • flavus
    How health policy regulatory or allocative?
    1 year ago
  • Mario
    Is medicare and medicaid allocatibe health policies?
    1 year ago
  • cathy
    Is the policy for the ACA distributive, Allocative, or regulatory?
    11 months ago
  • Preston
    What is allocative policy in public policy analysis?
    4 months ago
  • jaana
    Is medicaid the result of an allocative health policy?
    3 months ago
  • Emppu
    What are types of allocative health policies?
    13 days ago

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