The Income Distributive Implications of Recent Private Health Insurance Policies in Australia
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.
|Date of creation:||Feb 2006|
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- H.E. Frech Iii & Sandra Hopkins & Garry Macdonald, 2003. "The Australian Private Health Insurance Boom: Was It Subsidies Or Liberalised Regulation?," Economic Papers, The Economic Society of Australia, vol. 22(1), pages 58-64, 03.
- Alfons Palangkaraya & Jongsay Yong, 2005.
"Effects of Recent Carrot-and-Stick Policy Initiatives on Private Health Insurance Coverage in Australia,"
The Economic Record,
The Economic Society of Australia, vol. 81(254), pages 262-272, 09.
- Alfons Palangkaraya & Jongsay Yong, 2004. "Effects of Recent Carrot-and-Stick Policy Initiatives on Private Health Insurance Coverage in Australia," Melbourne Institute Working Paper Series wp2004n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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