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Title:Health care reform: Separating insurance from income redistribution PDF Logo
Authors:Breyer, Friedrich
Haufler, Andreas
Issue Date:2000
Series/Report no.:DIW-Diskussionspapiere 205
Abstract:Most systems of health care financing in EU member states currently include elements of income redistribution. The paper analyzes the effects of shifting this kind of redistribution to the tax system and argues that this reform could create two types of efficiency gains. On the expenditure side, it would facilitate the adoption of more incentive-compatible insurance contracts, for example through the introduction of copayment schemes. On the revenue side, income redistribution through the general tax system is likely to imply a shadow price of public funds that is lower than if redistribution is carried out through wage-based insurance contributions.
Subjects:health care finance
income redistribution
JEL:H51
I18
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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