Half-Private Healthcare

John Lapidus ()
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John Lapidus: University of Gothenburg

Chapter Chapter 5 in The Quest for a Divided Welfare State, 2019, pp 69-86 from Springer

Abstract: Abstract The rapid rise of private health insurance in Sweden was based on generous tax breaks, in this case gross salary deduction for the employee via the employer. The deduction was based on the fact that private health insurance was exempt from benefit taxation. The chapter demonstrates how the employee earns money on the transactions, while the employer gets a lot of goodwill at the expense of the state. This is one of the ways in which the divided welfare state creates a new welfare relation between employer and employee, rather than between state and citizen. The chapter also discusses political controversies related to subsidies of private health insurance and the creative way in which advocates of a divided welfare state invent new words for taxation.

Keywords: Reverse selectivity; Reverse means-testing; Tax break; Benefit taxation; Health tax; Divided welfare state (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-24784-3_5

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DOI: 10.1007/978-3-030-24784-3_5

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