The wage-dependence of the Public Health Insurance (PHI) as well as the somewhat inconsistent parallel coverage via PHI and private health insurance constitute drawbacks of the present health care revenue system, leading to undesirable distributional and allocative patterns and disadvantages in the course of demographic and economic change. Two conflicting approaches, the “Buergerversicherung” (“Citizens’ Health Insurance”) and the “Gesundheitsprämie” (“Flat Rate Health Insurance”) try to remedy these by way of different methods – the former with a statutory health insurance for all and a comprehensive income basis for proportionate health insurance contributions, the latter with a flat rate contribution for the present PHI including a massive tax subsidy for the contributions for low-income groups and children. The paper presents simulations of the distributional effects. Differing effects become evident. Moreover these patterns also reflect different “philosophies” of social welfare and public revenue regimes. The “Bürgerversicherung” reduces payments by wage and wage-replacement earners and generally by low income groups, the “Gesundheitspraemie” favors higher-income individuals and particularly two-earner married couples.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number
277.
Find related papers by JEL classification: I10 - Health, Education, and Welfare - - Health - - - General I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports: