Essay Undergraduate 725 words

Health Care Incentives vs. Penalties for Healthy Behavior

~4 min read

Abstract

This paper explores two dominant approaches to encouraging healthy behavior among Americans in the era of the Affordable Care Act: incentives (the "carrot") and penalties (the "stick"). It notes that chronic diseases such as heart disease, cancer, and diabetes account for more than 75% of health care costs, yet are largely preventable. Both public agencies and private employers have experimented with rewards for healthy habits and financial penalties for failing to meet health benchmarks. The paper argues, supported by research, that incentives are more effective than punishments because health decisions are shaped not only by personal choice but also by socioeconomic, environmental, and societal factors. Comprehensive incentive programs that include support services prove especially successful.

📝 How to Write This Type of Paper Writing guide — click to expand

▼

What makes this paper effective

The paper uses a clear organizing metaphor — the "carrot and stick" — that structures the entire argument and makes the comparison easy to follow.
It grounds the policy discussion in concrete statistics, such as chronic diseases accounting for over 75% of health care costs, giving the argument factual weight.
The paper acknowledges socioeconomic factors as a complicating variable, adding nuance to what could otherwise be a simplistic behavioral argument.

Key academic technique demonstrated

The paper demonstrates the technique of comparative policy analysis: two approaches (incentives vs. penalties) are defined, applied to real-world examples from both the public and private sectors, and then evaluated against evidence. The author draws on peer-reviewed journal sources to adjudicate between the two approaches rather than relying solely on opinion.

Structure breakdown

The paper opens by establishing the cost burden of preventable chronic disease and the policy context created by the Affordable Care Act. It then defines and illustrates both the carrot and stick approaches with employer and government examples. The third section makes the central argument — that incentives work better — and explains why socioeconomic and environmental factors make punishments inequitable and less effective. The conclusion synthesizes the argument and reaffirms the superiority of comprehensive incentive-based programs.

Introduction: Prevention Over Treatment

With the passage of the Affordable Care Act, the personal health of every American has become an important issue. While most health care funds are spent treating diseases and other health problems, there has recently been a push toward focusing on prevention. For example, "chronic diseases such as heart disease, cancer, stroke, and diabetes are now responsible for more than 75% of health care costs" (Berman, 2011, p. 328). Because these health problems are almost entirely preventable, a focus on prevention could save a great deal of money that would be better spent elsewhere. Therefore, many Americans are beginning to endorse policies that prevent health problems before they start. Some of these ideas involve incentives to reward people for healthy behavior, while others involve penalties to punish those who do not engage in it. However, research indicates that punishments are not as effective as incentives when it comes to altering the health behavior of Americans.

The Carrot and Stick Approaches Defined

It is very difficult to alter individuals' personal lifestyle choices, especially when those choices impact a person's health. But it is in the national interest to encourage people to make healthy lifestyle choices, and both the public and private sectors are recognizing this fact. With this in mind, two approaches have been proposed: the carrot and the stick. The carrot refers to incentives offered to individuals in order to entice them to adopt healthy practices, while the stick refers to punishments inflicted as a result of not doing so.

In some cases, companies have offered incentives ranging from gifts to cash for employees who engage in healthy activities. Local and state governments have also incorporated this idea into their policies by offering "enhanced" health care packages to Medicare recipients who "undergo screening exams, take prescribed medications, show up for appointments, and so on" (Blacksher, 2008, p. 13). On the other hand, there is the "stick" — a series of punishments aimed at forcing people to make personal health changes. Some companies have taken the step of charging their employees "when they fail to meet certain benchmarks related to body mass index, cholesterol, blood glucose, and blood pressure" (Blacksher, 2008, p. 13).

1 Locked Section · 150 words remaining

Why Incentives Outperform Penalties · 150 words

"Socioeconomic factors favor incentive-based approaches"

Conclusion: Incentives as the Better Path Forward

Most agree that it is better to prevent health problems rather than to treat them. But in order to prevent health problems, individuals must make better, more informed lifestyle choices. Therefore, many private and public organizations are attempting to get people to change their lifestyles so as to prevent possible health problems such as heart disease, diabetes, cancer, and others. Both incentives to promote healthy lifestyles and penalties for those who do not engage in healthy behavior are currently being used to alter individual behavior, with varying results.

You’re 60% through this paper. Sign up to read the remaining 1 section.

130,000+ paper examples AI writing assistant Citation generator Cancel anytime

Key Concepts in This Paper

Preventive Health Care Carrot and Stick Health Incentives Chronic Disease Affordable Care Act Workplace Wellness Socioeconomic Barriers Public Health Policy Behavioral Change Health Penalties