Jongsay Yong () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) Alfons Palangkaraya () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) Elizabeth Webster () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) Peter Dawkins (Victorian Department of Treasury and Finance)
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The Australian government implemented a series of new private health insurance policies between 1997 and 2000. As a result, the proportion of the population with private health insurance coverage increased by more than 35%. However, this paper finds significant evidence that the policy reform disproportionately favours high income earners. In particular, the 30 per cent premium subsidy represents a windfall gain for households which would have purchased private health insurance even without the rebate. The amount of the gain is approximately $900 million per year, a large proportion of which would go to higher income households.
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number
wp2006n02.
Length: 25 pages Date of creation: Feb 2006 Date of revision: Handle: RePEc:iae:iaewps:wp2006n02
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