Question

4. Is medical care a luxury good or a necessity? Why should it matter to policy makers? What is the empirical evidence?

Answer 1

Health care can be luxury as well as the necessity good. It depends on the level of income. For upper-middle-class, health is a luxury good. Since they tend to make huge expenditures on health services.

But on the other hand, for the lower middle class, health is not luxury good. it is a necessity. The lower middle class has no option but to take the service in the low-grade hospital if any emergency arises.

Thus, the government must address the problem where medical is necessity. In other words, government policies must be aimed to address the problem of lower middle class. Even upper-class people also can take the services at the level of lower middle class.

Basic facilities of medical must be made available to all. Receiving basic medical facilities should be the fundamental right of people.