Role of Government in Health and Medical care
Free Riders can be defined as individuals that receive benefits from an activity without having to pay for it themselves. They also consume more than their fair share of public resources or shoulder less than a fair share of the cost of its production. This is highly considered as an economic problem only when it leads to the non-production or under-production of a public good and when it leads to the use of excessive common property resources. The society in the Northwest veteran homes may have individuals who never participated in the war yet they are benefitting from the services being offered (Basili & Vercelli, 2006).
In situations like these, the free riders harbor possible externalities that hinder them from giving back to the society. These externalities can be defined as the excessive use of a transaction that does not directly benefit an individual in any way and prices of commodities do not reflect the full benefits in production of products or services. There are of three types of externalities namely positive externalist, negative externalist and positional externalities. Removing policies that deal with Northwest veterans is a good example of negative externalities since the veterans in the society will no longer be recognized. This becomes tragic, as the state can no longer rely on compensating the veterans thus rendering them redundant. This situation can only be corrected by making the state understand the role played by the veterans in a functional constitution.
Having completed the full duty as a veteran, one is discharged honorably from the armed forces after a period of 90 days of active duty with an established legal residency (Arnold, 2008). This only occurs when a veteran becomes displaced from his city or state and qualifies for the Northwestern tax exemption. Any other veteran, who is recognized as having a disability and has been approved for full compensation, receives service benefits based on the extent of his disability. The veteran is then eligible for a complete property tax waiver while living in the Northwestern home. Veterans with serious disabilities on most occasions earn grants on Special Adaptive Housing for homes designed for wheelchair living. In most cases, they are exempted from income taxation. This is commonly referred to as positive externality.
Positional externalities are all the beneficiaries who exist after their related veteran bearing their sir name dies and they continue to enjoy the benefits offered. In a given situation, the Department of Veterans Affairs Office provides the legitimate beneficiaries with verification of death, birth and marriage records to be provided in the homes upon any case of mistaken identity. Homelessness, being another mode of positional externality, is a condition where the veterans do not have regular houses because they cannot afford them. This is mainly caused by poor planning of the benefits they receive upon retiring from active duty. In such circumstances, the veterans are forced to reside in shelters mainly provided by the churches. This leaves the government with the tedious work of searching for them, putting them in the records and finally compensating them. According to the above externalities, the government can have means of enabling the beneficiaries to give back to the society (Arnold, 2008).
The emphasis placed on the importance of the health services given to the veterans enables the society to have a positive response towards these services as opposed to putting them down. One of these solutions involves buying long-term care insurance. Nursing home costs and home care financial support can be overwhelming to the veterans. They are therefore advised to register with an appropriate insurance company that is recognized by the government and is registered to allow a flowing compensation period. This will enable the veterans cover a part of the costs necessary for their care.
Another solution involves considering reverse mortgage. This is equivalent to a home loan. Normally every month the applicant receives a monthly check from the bank for formality purposes, and thereafter they are approved for a loan that earns an interest only after death or the sale of the residential place. In such cases, the loans security is the value of the house. The Supplemental Security Income may also act as security, which is normally registered with the Social Security Administration (Basili & Vercelli, 2006). Improving the quality of life for our veterans can also be beneficial. This can be achieved by hiring unemployed veterans who qualify if they were discharged from active duty, and have received unemployment benefits that are usually granted four weeks before being hired. In addition, the veterans can be provided with a payment fee that is regulated by the Department of Veteran Affairs. Retirees also benefit from this payment through the Supplementary Security Income.
By improving the hospitals for the veterans, a given standardized fee for non-recurring maintenance should be clearly addressed and all deficiencies sited. Due to the large population of the veterans, there should be an increase in the number of Veteran Affairs departments for the processing of the claims. This enables the backlog to reduce in processing veteran claims. It also enhances an improved automatic processing of veterans benefits, which are received sooner and more accurately. Finally, the construction of extended care facilities makes the veterans conversant with the outside world and the government provides the state with a grant. This leads to more construction of extended care facilities for the veterans. Nursing home resident’s rights and protections under the law should be clearly stated, drafted and updated under the law. A copy of these should be given to every new resident in each veteran home. In conclusion, this free rider concept can be dealt with in a government and state level only when and if the appropriate institutions are free from corruption and more transparent to the society.
Arnold, R. A. (2008). Economics. Boston, MA: Cengage learning
Basili, M., & Vercelli, A. (2006). Enviromental, inequality and collective action. Wigton, UK: Routledge