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An economic analysis of the Private Health Insurance Incentive Act (1998)

Vaithianathan, Rhema


The Private Health Insurance Incentives Act (1998) (PHIIA) provides a universal subsidy to private health insurance. It was justified on two main grounds: that increased private insurance would ease the pressure on the publicly funded portions of the health system, and that the PHIIA would mitigate the adverse selection consequences of community rating. This paper argues that since insurers are able to design plans to separate risk groups, the consequences of adverse selection may have been...[Show more]

CollectionsANU Research Publications
Date published: 2001
Type: Working/Technical Paper


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