The determinants of demand for private health insurance under Medicare

Hopkins, Sandra & Kidd, Michael P. (1996) The determinants of demand for private health insurance under Medicare. Applied Economics, 28(12), pp. 1623-1632.

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Since the introduction of Medicare in 1984, the proportion of the Australian population with private health insurance has declined considerably. Insurance for health care consumption is compulsory for the public health sector but optional for the private health sector. In this paper, we explore a number of important issues in the demand for private health insurance in Australia. The socio-economic variables which influence demand are examined using a binary logic model. A number of simulations are performed to highlight the influence and relative importance of various characteristics such as age, income, health status and geographical location on demand. A number of important policy issues in the private health insurance market are highlighted. First, evidence is provided of adverse selection in the private health insurance pool, second, the notion of the wealthy uninsured is refuted, and finally it is confirmed that there are significant interstate differences in the demand for private health insurance.

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ID Code: 59280
Item Type: Journal Article
Refereed: Yes
DOI: 10.1080/000368496327598
ISSN: 1466-4283
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 29 Apr 2013 01:41
Last Modified: 29 Apr 2013 01:41

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