Joiners and leavers stayers and abstainers: Private health insurance choices in Australia (original) (raw)
Related papers
2008
Between 1997 and 2000 the Australian government introduced three policy reforms that aimed to increase private health insurance coverage and reduce public hospital demand. The first provided income-based tax incentives; the second gave an across-the-board 30% premium subsidy; and the third introduced selective age-based premium increases for those enrolling after a deadline. Together the reforms increased enrolment by 50% and reduced the average age of enrollees. The deadline appeared to induce consumers to enroll now rather than delay. We estimate a model of individual insurance decisions and examine the effects of the reforms on the age and income distribution of those with private cover. We interpret the major driver of the increased enrollment as a response to a deadline and an advertising blitz, rather than a pure price response.
RePEc: Research Papers in Economics, 2007
It was established as a UTS Centre in February, 2002. The Centre aims to contribute to the development and application of health economics and health services research through research, teaching and policy support. CHERE's research program encompasses both the theory and application of health economics. The main theoretical research theme pursues valuing benefits, including understanding what individuals value from health and health care, how such values should be measured, and exploring the social values attached to these benefits. The applied research focuses on economic and the appraisal of new programs or new ways of delivering and/or funding services. CHERE's teaching includes introducing clinicians, health services managers, public health professionals and others to health economic principles. Training programs aim to develop practical skills in health economics and health services research. Policy support is provided at all levels of the health care system by undertaking commissioned projects, through the provision of formal and informal advice as well as participation in working parties and committees.
… manuscript, Centre for Health Economics Research …, 2005
We develop and estimate a model of individual decisions to enrol in private health insurance in Australia in order to understand the effect of three specific government programs that changed the structure of premiums facing consumers. The three reforms encompass incomebased subsidies to purchasing health insurance, an across-the-board 30% reduction in premiums, and a selective age-based increase in premiums for new entrants. Our model of the timing of the insurance choice enables us to understand how particular aspects of the reforms affected the age and income distribution of those with private cover. Together the reforms achieved significant increases in enrolment and a reduction in the average age of enrolees over a five year period. Despite expectations that the more favourable selection resulting from the public subsidies would cause insurance premiums to stabilize, or even to fall, they have continued to increase at a rate well in excess of the CPI. Understanding how changes in enrolment are related to family characteristics, and the impact of the insurance reforms on enrolment, is an important policy issue both in Australia and overseas.
Policy change and private health insurance: did the cheapest policy do the trick
Australian Health Review, 2002
From the introduction of Australia's national health insurance scheme (Medicare) in 1984 until recently, the proportion of the population covered by private health insurance declined steadily. Following an Industry Commission inquiry into the private health insurance industry in 1997, a number of policy changes were effected in an attempt to reverse this trend. The main policy changes were of two types: "carrots and sticks" financial incentives that provided subsidies for purchasing, or tax penalties for not purchasing, private health insurance; and lifetime community rating, which aimed to revise the community rating regulations governing private health insurance in Australia. This paper argues that the membership uptake that has occurred recently is largely attributable to the introduction of lifetime community rating which goes some way towards addressing the adverse selection associated with the previous community rating regulations. This policy change had virtually no cost to government. However, it was introduced after subsidies for private health insurance were already in place. The chronological sequencing of these policies has resulted in substantial increases in government expenditure on private health insurance subsidies, with such increases not being a cause but rather an effect of increased demand for private health insurance.
Distributional impact of recent changes in private health insurance policies
Australian Health Review, 2005
The impacts of changes to private health insurance (PHI) policies introduced since 1999 ? in particular the 30% PHI rebate and the Lifetime Health Cover ? have been much debated. We present historical analyses of the impacts in terms of the proportion of Australians having hospital insurance cover under different PHI policies, by age, gender and socioeconomic status, and project these to 2010 using a new Private Health Insurance coverage model. The combined effect of the 30% rebate and Lifetime Health Cover was to increase PHI membership from just over 30% in 1998 to just under 50% by the end of 2000, due mainly to more people taking out PHI cover from among the richest 20% of the population. Among the poorest 40% the impact was minimal. Model projections suggested that, had the new PHI policies not been introduced, then the proportion of Australians with PHI would have declined to around 20% by 2010, compared with 40% if the current arrangements remained in place. Also, analysis of...
Does the reason for buying health insurance influence behaviour
2006
Following the implementation of a range of government measures to increase private health insurance coverage in Australia, the 2001 National Health Survey asked respondents not only about their insurance status, but also about their reasons for having or not having health insurance. The most common reason given for having health insurance was "security/peace of mind" but other reasons included "choice of doctor", "shorter wait for treatment", "lifetime cover/avoid the surcharge", "to gain government benefits/avoid the Medicare surcharge". This study uses these data to identify different categories (types) of consumer in terms of their reasons for having health insurance. Four broad types of consumer are identified: those who purchase health insurance for security reasons, for increased choice, for financial reasons, and for health reasons. We find that, controlling for health and socioeconomic status, insurance type is significantly associated with hospital utilization, particularly the probability of being admitted as a public or private patient. We also investigate whether insurance type explains timing of insurance purchase.
The Australian Private Health Insurance Boom: Was It Subsidies Or Liberalised
2002
Over the period 1997 to 2000, the Australian government introduced two waves of price subsidies, then liberalised regulation to encourage private health insurance. Most of the increase in coverage occurred after the liberalization. Thus, it appears that this policy change rather than the earlier subsidies, explains most of the increase. We explore the relative impact of the different policy changes using trend analysis and careful attention to timing. While much of the increase in coverage may be attributed to liberalised regulation, the price subsidy did increase coverage. The increase was commensurate with existing estimates of the price elasticity of demand for health insurance.
2020
Background: Since the introduction in 1984 of Australia’s publicly-funded universal healthcare system, Medicare, healthcare financing has relied on a mix of public and private sources to meet the needs of the population [1]. However, in recent years, there has been a decline in the number of Australians choosing to purchase private health insurance (PHI), particularly within the young adult age group with the proportion of insurance customers aged 20 to 29 falling from 10.3% to 9.4% between 2012 and 2017 [2]. Young adults are critical to private health insurance funding models as their involvement offsets the drawdown by older adults[3]. While this issue is widely reported in the Australian media, few empirical studies have explored the factors that enable or constrain young adults’ enrolment in PHI. Methods: To address the scarcity of research about the motivational factors behind young adult decision-making, this study conducted a survey of 594 Australian young adults aged between...
Adverse Selection and the Decline in Private Health Insurance Coverage in Australia: 1989-95
Economic Record, 2003
The decline in private health insurance coverage over the period 1989-1995 is analysed using the ABS National Health Surveys. Individual's health status and health risk behaviours are found to be significant determinants of their decision to purchase private health insurance. At a point in time, the pool of the insured is very heterogeneous, with a mix of both good and bad health risks. It is found that the decline in insurance coverage over the period 1989-95 coincided with an increase in the degree of 'adverse selection' within the insured population.