The Economics of a Two Tier Health System: A Fairer Medicare?

Patricia Frances Apps (), Ray Rees and Elizabeth Savage ()

No 478, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

Abstract: This paper analyses a recent proposal of the Australian Government to reform the existing Medicare system. It develops models of the physician’s behaviour and of a household’s demand for medical insurance under the proposed system, and then proceeds to characterise the equilibrium under the new proposals. It argues that those most likely to be made worse off are low income households with children, though a full evaluation of the effects of the proposal requires it to be analysed in a public finance framework.

Keywords: health care; government policy; medical insurance (search for similar items in EconPapers)
JEL-codes: I11 I18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea and nep-ias
Date: 2004-09
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Persistent link: http://EconPapers.repec.org/RePEc:auu:dpaper:478

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