Health Policy and Equity of Health Care Financing in Australia: 1973–2010. (14th January 2014)

• Record Type: Journal Article
• Authors: Hajizadeh, Mohammad; Connelly, Luke Brian; Butler, James Robert Gerard
• Is Part Of: Review of income and wealth. Series 60:Number 2(2014:Jun.)
• Page Start: 298
• Page End: 322
• Publication Date: 2014-01-14
• Subjects: National income -- Accounting -- Periodicals; 332.05
• DOI: 10.1111/roiw.12103
• Languages: English
• ISSNs: 0034-6586

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>Using data from Australian Taxation Statistics and Household Expenditure Surveys we analyze the distribution of health care financing in Australia over almost four decades. We compute Kakwani Progressivity indices for four sources of health care financing: general taxation, Medicare Levy payments, Medicare Levy Surcharge payments, and direct consumer payments, and estimate the effects of major policy changes on them. The results demonstrate that the first three of these sources of health care financing are progressive in Australia, while the distribution of direct payments is regressive. Surprisingly, we find that neither the introduction of Medicare in Australia in 1984 nor the Extended Medicare Safety Net in 2004 had significant effects on the progressivity of health care financing in Australia. By contrast, the Lifetime Cover scheme—introduced in 2000 to encourage people to buy and hold private health insurance—had a progressive effect on health care financing.</p> </abstract>