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Title:Premium subsidies and social insurance: Substitutes or complements? PDF Logo
Authors:Kifmann, Mathias
Roeder, Kerstin
Issue Date:2011
Series/Report no.:hche Research Paper, Hamburg Center for Health Economics 2011/01
Abstract:Premium subsidies have been advocated as an alternative to social health insurance. These subsidies are paid if expenditure on health insurance exceeds a given share of income. In this paper, we examine whether this approach is superior to social insurance from a welfare perspective. We show that the results crucially depend on the correlation of health and productivity. For a positive correlation, we find that combining premium subsidies with social insurance is the optimal policy.
Subjects:social insurance
health insurance
redistributive taxation
Document Type:Working Paper
Appears in Collections:hche Research Papers, Hamburg Center for Health Economics, Universität Hamburg

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