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A Welfare Analysis of the Commonwealth Seniors Health Card

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  • PETER SIMINSKI

Abstract

The Commonwealth Seniors Health Card (CSHC) is a key element of a suite of benefits for Australia's ‘self‐funded retirees’. Its main component is a pharmaceutical concession, which is analysed as a form of public health insurance. The utility gain through risk‐pooling is found to be negligible under conservative assumptions. The deadweight loss through moral hazard may be considerable. Finally, the CSHC may be seen as an inequitable transfer, because CSHC holders are a particularly wealthy population.

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  • Peter Siminski, 2009. "A Welfare Analysis of the Commonwealth Seniors Health Card," The Economic Record, The Economic Society of Australia, vol. 85(269), pages 164-180, June.
    • Handle: RePEc:bla:ecorec:v:85:y:2009:i:269:p:164-180
    DOI: 10.1111/j.1475-4932.2009.00548.x
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    Cited by:

    1. Todd Morris, 2022. "The unequal burden of retirement reform: Evidence from Australia," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 592-619, April.

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