Article ID Journal Published Year Pages File Type
961926 Journal of Health Economics 2011 12 Pages PDF
Abstract
Premium subsidies have been advocated as an alternative to social health insurance. These subsidies are paid if expenditure on health insurance exceeds a given share of income. In this paper, we examine whether this approach is superior to social health insurance from a welfare perspective. We show that the results crucially depend on the correlation of health and productivity. For a positive correlation, we find that combining premium subsidies with social health insurance is the optimal policy.
Related Topics
Health Sciences Medicine and Dentistry Public Health and Health Policy
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