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Health Care Reform: Separating Insurance from Income Redistribution Author info | Abstract | Publisher info | Download info | Related research | Statistics Friedrich Breyer
Andreas Haufler
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Most systems of health care financing in EU member states currently include elements of income redistribution. The paper analyzes the effects of shifting this kind of redistribution to the tax system and argues that this reform could create two types of efficiency gains. On the expenditure side, it would facilitate the adoption of more incentive-compatible insurance contracts, for example through the introduction of copayment schemes. On the revenue side, income redistribution through the general tax system is likely to imply a shadow price of public funds that is lower than if redistribution is carried out through wage-based insurance contributions.
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number
205.
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Length: 24 p.
Date of creation: 2000Date of revision:
Handle: RePEc:diw:diwwpp:dp205Contact details of provider: Postal: Mohrenstra�e 58, D-10117 Berlin Phone: xx49-30-89789-0 Fax: xx49-30-89789-200 Email: Web page: http://www.diw.de/en More information through EDIRC
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Keywords: health care finance ; income redistribution ; Other versions of this item:
Find related papers by JEL classification: H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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