Answer:
There are several reasons why the government may intervene in the health care market. Here are three detailed reasons:
1. Market failures and inefficiencies: Market failures, inefficiencies and distributional issues (equity) are the primary reasons for government intervention in the health care market. In many markets, there is a less-than-optimal allocation of resources from society's point of view so governments intervene to influence the level of production or consumption.
2. Regulate the marketplace: Government intervention in the health care market is required to regulate the marketplace, establish the parameters for prices, and allocate and fund scarce resources.
3. Improve access to essential medicines: Access to quality essential medicines at affordable price to patients in the healthcare market is one of the main goals of universal health coverage and health-related sustainable development goals. Regulating pharmaceutical pricing system is one of the key strategies to ensure access to essential medicines.