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.
Palangkaraya
Alfons
A
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
Yong
Jongsay
J
Webster
Elizabeth
E
Dawkins
Peter
P
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