IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Insurance Rebates, Incentives and Primary Care in Australia

Listed author(s):
  • Luke B Connelly


    (Australian Centre for Economic Research on Health (ACERH), The University of Queensland, Edith Cavell Building, Royal Brisbane and Women's Hospital, Herston, QLD 4029, Australia.
    Centre of National Research on Disability and Rehabilitation Medicine (CONROD), The University of Queensland, Edith Cavell Building, Royal Brisbane and Women's Hospital, Herston, QLD 4029, Australia.
    School of Economics, The University of Queensland, Colin Clarke Building, St. Lucia QLD 4072, Australia.)

  • James R G Butler

    (ACERH, Research School of Population Health, The Australian National University, M Block (Building 62), cnr Mills and Eggleston Roads, Canberra, ACT 0200, Australia.)

Australia has a universal, compulsory, public health insurance scheme that includes insurance rebates for private fee-for-service medical practitioner services. Recent sweeping changes to the rebates for general practitioner (GP) services provide an opportunity to observe the effects of widespread insurance changes on the behaviour of GPs and aggregate outcomes such as quantities, prices and co-payments. In this paper, we study the effect of two important changes to subsidies for GP services, the first of which increased the rebates payable for services provided to specific patient groups, and the second of which increased rebates payable for all patients. Using economic theory, predictions of the effect of the rebate increase on quantities, prices and co-payments are produced that depend on the structure of the market. Using time-series data, we then present short-run empirical evidence that suggests that the supply curve for GP services is backward-bending.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: Link to full text PDF
Download Restriction: Access to full text is restricted to subscribers.

File URL:
File Function: Link to full text HTML
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Palgrave Macmillan & The Geneva Association in its journal The Geneva Papers on Risk and Insurance Issues and Practice.

Volume (Year): 37 (2012)
Issue (Month): 4 (October)
Pages: 745-762

in new window

Handle: RePEc:pal:gpprii:v:37:y:2012:i:4:p:745-762
Contact details of provider: Web page:


Route de Malagnou 53, CH - 1208 Geneva

Phone: +41-22 707 66 00
Fax: +41-22 736 75 36
Web page:

More information through EDIRC

Order Information: Web:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Elizabeth Savage & Glenn Jones, 2004. "An Analysis of the General Practice Access Scheme on GP Incomes, Bulk Billing and Consumer Copayments," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(1), pages 31-40, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:37:y:2012:i:4:p:745-762. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Rebekah McClure)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.