About two-thirds of funding for substance abuse treatment comes from taxpayers.

Question

About two-thirds of funding for substance abuse treatment comes from taxpayers. Are there
external benefits of substance abuse treatment that warrant this level of public funding?
Vaccination schedules are predictable, meaning insurance coverage for vaccinations does
not protect consumers against risks. Insurance coverage for vaccinations drives up costs
because more people get vaccinated if coverage is available and because insurers have
overhead costs. Does insurance coverage for vaccines do anything useful? Explain your
answer.
Why are many economists opposed to licensure of medical facilities and personnel?
Why would insurance coverage tend to increase rational ignorance?

Explanation / Answer

1) Public funding for substance abuse treatment definitely has external benefits because a person who has been rehabed will be a uselful human resource to the society who can be utilized in a productive way in the economy.

2)Insurance coverage for vaccination drives is useful because even though it drives up costs but because more people are taking vaccination, the insurance sales volume will go up and this can be used to reduce the overhead costs. Also vaccination improves life expectancy and more people may opt for insurance cover if life span increases.

3) Economists are opposed to licensure of medical facilities and personnnel because it is a public goods which is very much vital and essential to the society. Licensure will result in few people practising thereby the demand will surpass the supply of medical facilities and personnel,

4) Insurance coverage tend to increase rational ignorance because  the cost of educating oneself on insurance issue exceeds the potential benefit that the knowledge would provide.

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