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Measuring the effects of reducing subsidies for private insurance on public expenditure for health care |
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| Institution: | 1. RNTCP Medical Consultant, Delhi, India;2. Director, New Delhi TB Centre, India;3. State TB Officer, Delhi State, India;4. Assistance Programme Officer, Delhi State TB Programme, India;5. Medical Officer, Delhi State TB Programme, India;1. Erasmus School of Health Policy & Management, Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands;2. Equalis, Jaarbeursplein 6, 3521 AL Utrecht, The Netherlands;1. Robinson Research Institute, and School of Paediatrics and Reproductive Health, University of Adelaide, South Australia 5006, Australia;2. Flinders Health Economics Group, Flinders University, South Australia 5041, Australia;3. Vaccinology and Immunology Research Trials Unit, Women''s and Children''s Health Network, Adelaide, South Australia 5006, Australia |
| Abstract: | This paper investigates the effects of reducing subsidies for private health insurance on public sector expenditure for hospital care. An econometric framework using simultaneous equation models is developed to analyse the interrelated decisions on the intensity and type of health care use and private insurance. The framework is applied to the context of the mixed public–private system in Australia. The simulation projections show that reducing premium subsidies is expected to generate net cost savings. This arises because the cost savings achieved from reducing subsidies are larger than the potential increase in public expenditure on hospital care. |
| Keywords: | Private health insurance Subsidies Public and private finance Simultaneous equation models Count data |
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