The Impact of Private Hospital Insurance on the Utilization of Hospital Care In Australia
Damien Eldridge (),
Ilke Onur (),
Malathi Velamuri and
Cagatay Koc ()
Additional contact information
Cagatay Koc: Senior Economist, Cornerstone Research, USA
No 2013.03, Working Papers from School of Economics, La Trobe University
We use the 2004-'05 wave of the Australian National Health Survey to estimate the impact of private hospital insurance on the propensity for hospitalization as a private patient. We employ instrumental-variable methods to account for the endogeneity of supplementary private hospital insurance purchases. We calculate moral hazard based on a difference-of-means estimator. We decompose the moral hazard estimate into a diversion component that is due to an insurance-induced substitution away from public patient care towards private patient care, and an expansion component that measures a pure insurance-induced increase in the propensity to seek private patient care. We find some evidence of self-selection into insurance but this finding is not robust to alternative specifications. Our results suggest that on average, private hospital insurance causes a sizable and significant increase in the likelihood of hospital admission as a private patient. However, there is little evidence of moral hazard; the treatment effect of private hospital insurance on private patient care is driven almost entirely by the substitution away from public patient care towards private patient care.
Keywords: Health Insurance; Health Care Consumption; Moral Hazard (search for similar items in EconPapers)
JEL-codes: I11 I18 C35 (search for similar items in EconPapers)
Pages: 52 pages
New Economics Papers: this item is included in nep-cta, nep-hea and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.latrobe.edu.au/__data/assets/pdf_file/0003/269616/2013.03.pdf first version, 2013.02.pdf (application/pdf)
http://www.latrobe.edu.au/__data/assets/pdf_file/0003/269616/2013.03.pdf Revised version, 2013.02.pdf (application/pdf)
Journal Article: The impact of private hospital insurance on the utilization of hospital care in Australia (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:trb:wpaper:2013.03
Access Statistics for this paper
More papers in Working Papers from School of Economics, La Trobe University Contact information at EDIRC.
Bibliographic data for series maintained by Stephen Scoglio ( this e-mail address is bad, please contact ).