... in societal well-being through the allocation of healthcare on the basis of need and not simply income or wealth. Secondly, healthcare, as a merit good, confers considerable positive benefits to society as a whole beyond those which the individual considers privately; the decreased incidence of disease, pain and suffering is an objective ethical imperative and, to some extent, an altruistic paternal externality of providing free healthcare. More specifically, the positive externalities of reduced absenteeism and increased life expectancy increase productive efficiency within the workforce. Merit goods are defined as those which would be under-consumed and hence underprovided by the free market due to asymmetry of information and difficulty in consumer rational-decision making when a time delay exists between costs and benefits. Healthcare is also considered to be a quasi-public good exhibiting the characteristics of non-excludability and non-rivalry and apparent inadequate provision by the free market which would hinder productive efficiency. Under-consumption ...

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