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Measuring the effects of removing subsidies for private insurance on public expenditure for health care

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  • Chai Cheng, T.

Abstract

This paper investigates the effects of removing subsidies for private health insurance on public sector expenditure for hospital care. An econometric framework using simultaneous equation models is developed to analyse the interrelated decisions on the intensity and type of health care use and insurance. The results indicate that while privately insured individuals are more likely to seek hospital care as a private patient, they do not differ in their intensity of hospital care use compared with those without private insurance. The simulation results suggest that eliminating subsides could potentially yield substantial public sector savings.

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Bibliographic Info

Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 11/32.

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Date of creation: Oct 2011
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Handle: RePEc:yor:hectdg:11/32

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Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
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Web page: http://www.york.ac.uk/res/herc/research/hedg/
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Related research

Keywords: Demand for Hospital Care; Private Insurance; Bivariate count data models; Simultaneous equation models; Policy simulation;

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References

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