The analytics of the Australian private health insurance rebate and the Medicare levy surcharge

Robson, Alex, Ergas, Henry and Paolucci, Francesco (2011) The analytics of the Australian private health insurance rebate and the Medicare levy surcharge. Agenda, 18 (2). ISSN 1322-1833

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Official URL: http://epress.anu.edu.au/apps/bookworm/view/Agenda...

Abstract

This paper presents an analytical framework for examining changes in the Private Health Insurance rebate (PHIR) and the Medicare Levy Surcharge (MLS), and uses it to establish three key propositions. First, increases in the MLS rate tend to reduce the elasticity of demand for private health insurance. Second, simultaneously increasing MLS rates and thresholds has a theoretically ambiguous effect on PHI take-up rates. Third, means testing the PHIR can never increase PHI take-up, and will reduce it in some circumstances. The paper concludes with a discussion of the possible consequences of recently proposed policy changes to private health insurance in Australia.

Item Type: Article
Subjects: B900 Others in Subjects allied to Medicine
L100 Economics
T800 Australasian studies
Department: Faculties > Health and Life Sciences > School of Health, Community and Education Studies > Nursing, Midwifery and Health
Faculties > Health and Life Sciences > School of Health, Community and Education Studies > Public Health and Wellbeing
Depositing User: Ay Okpokam
Date Deposited: 19 Apr 2012 11:45
Last Modified: 10 Aug 2015 11:39
URI: http://nrl.northumbria.ac.uk/id/eprint/6313

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