Effectiveness of Rational Theory in development of Health Insurance Policy (Essay Sample)

 
 
 
 
 
 
 
 
Public Policy
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Public Policy
Public policy is a strategy used by the government to maintain order and cover the needs of the citizens through various actions that are defined by the constitution. For example, in the United States, there have been recent transformations to the health care system, which necessitate all the citizens to have health insurance (Dror, 2017). The policy was implemented after a series of debates, assessments, and analyses. These steps enabled the federal government to reach the conclusion that the policy would serve the best interests of US citizens. The policy revolves around health issues because it addresses how citizens can be protected from diseases, how the US residents can access cheap medical care and how the public can be educated on the common illnesses (Hedström & Stern, 2017). The essay will discuss the American health insurance policy and describe the effectiveness of the rational theory for the policy development process.
Health Insurance Policy
The health insurance policy of the United States was signed into law, and it was named as the Affordable Care Act. The aim of this public policy was to increase the health insurance coverage to all Americans and cut healthcare spending and costs. The principle stakeholders and proponents of this policy stated that it had the potential of reforming the healthcare system of the United States by lowering the expenses and improving access to healthcare (Dror, 2017).In the United States, the healthcare policy involves the establishment of implementation of various laws and regulations for controlling the state`s medical care system.
The principle stakeholders formed the healthcare insurance policy in order to cover a broad range of sectors such as insurance, pharmaceuticals, and information technology in health. The health insurance policy is offered in the US through a third-party payer model reimburses the healthcare facilities for the high cost of the medical care services that are provided to the patients. The federal government also uses a combination of public and private insurances. 
The main public insurance programs are Medicaid, which covers low-income populations and individuals who are living with a disability, and Medicare which covers individuals who are older than 65 years or younger people who live with specific disabilities. The policymakers of the health insurance policy formulated it with the aim of improving the quality of healthcare for all US citizens, regulating the healthcare industry, and cutting off the medical care spending of the United States. 
Rational Theory
The rational theory holds that people use rational evaluations to make rational pronouncements and attain outcomes that are aligned with their personal goals. The theory suggests that the outcomes are mostly associated with a person`s best self-interest. For example, economists and other major stakeholders may use the rational theory to understand specific behaviors in the general society. 
In sociology, the rational theory is a theoretical model which is mainly used in several social sciences such as politics. Some critics argue that it has many assumptions, it lacks an empirical way of testing, and it has limited validity (Hedström & Stern, 2017). The rational theory has been applied in the healthcare industry to make certain decisions and achieve the intended goals and objectives. The principal stakeholders in the health care industry use rationality to improve the health outcomes of people in the overall population and reduce errors. The rational theory makes choices and decisions based on reason, and it is perceived as a proper approach to attaining a certain goal and solving a problem (Hedström & Stern, 2017). The proponents and stakeholders who use the rational theory in medical practice are motivated by the needs, wants, and objectives that express their interests and preferences.
Effectiveness of the Rational Theory in the development of Health Insurance Policy
The rational theory was effective during the development phase of the health insurance policy. The principle stakeholders and policymakers who formulated the health insurance policy, made this model with the motive of producing the be