Health care reform: Separating insurance from income redistribution
AbstractMost systems of health care financing in EU member states currently include elements of income redistribution. The paper analyzes the effects of shifting income redistribution entirely to the tax system, while confining public health systems to their insurance role. We argue that this reform could create two types of efficiency gains. On the expenditure side, it would allow to offer insured persons an improved menu of choices - for example through co-payment schemes - that would help to reduce the gap between the social costs of health care and the perceived private costs. On the revenue side, social security contributions represent a specific type of wage taxation that may imply a shadow price of public funds above that of the general tax system. --
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Bibliographic InfoPaper provided by University of Konstanz, Department of Economics in its series Discussion Papers, Series 1 with number 296.
Date of creation: 1999
Date of revision:
Other versions of this item:
- Friedrich Breyer & Andreas Haufler, 2000. "Health Care Reform: Separating Insurance from Income Redistribution," International Tax and Public Finance, Springer, vol. 7(4), pages 445-461, August.
- Friedrich Breyer & Andreas Haufler, 2000. "Health Care Reform: Separating Insurance from Income Redistribution," Discussion Papers of DIW Berlin 205, DIW Berlin, German Institute for Economic Research.
- 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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