The income distributive implications of recent private health insurance policy reforms in Australia.
The Australian government implemented a series of private health insurance (PHI) policy reforms between 1997 and 2000. As a result, the proportion of the population with PHI coverage increased by more than 35%. However, this study found significant evidence that the policy reform disproportionately favours high-income earners. In particular, the 30% premium subsidy represents a windfall gain for households which would have purchased PHI even without the rebate. The amount of such gain is estimated to be around $900 million per year, a large proportion of which went to higher income households.
Melbourne Institute of Applied Economic and Social Research and Centre for Microeconometrics, The University of Melbourne, L7 Alan Gilbert Building, 161 Barry Street, Parkville, VIC, 3010, Australia. alfonsp@unimelb.edu.au
Alfons
A
Palangkaraya
Jongsay
J
Yong
Elizabeth
E
Webster
Peter
P
Dawkins
D001315:Australia; D006801:Humans; D007183:Income Tax / Q000331:legislation & jurisprudence*; D019458:Insurance Coverage / Q000191:economics / Q000331:legislation & jurisprudence*; D007348:Insurance, Health / Q000191:economics / Q000331:legislation & jurisprudence*; D015233:Models, Statistical; D012923:Social Class