A Welfare Analysis of the Commonwealth Seniors Health Card
The Economic Record, 2009, vol. 85, issue 269, 164-180
The Commonwealth Seniors Health Card (CSHC) is a key element of a suite of benefits for Australia's ‘self‐funded retirees’. Its main component is a pharmaceutical concession, which is analysed as a form of public health insurance. The utility gain through risk‐pooling is found to be negligible under conservative assumptions. The deadweight loss through moral hazard may be considerable. Finally, the CSHC may be seen as an inequitable transfer, because CSHC holders are a particularly wealthy population.
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