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The redistributive effect of health care finance in twelve OECD countries

Van Doorslaer, Eddy; Wagstaff, Adam; Van Der Burg, Hattem; Christiansen, Terkel; Citoni, Guido; Di Biase, Rita; Gerdtham, Ulf G. LU ; Gerfin, Mike; Gross, Lorna and Häkinnen, Unto, et al. (1999) In Journal of Health Economics 18(3). p.291-313
Abstract

The OECD countries finance their health care through a mixture of taxes, social insurance contributions, private insurance premiums and out-of-pocket payments. The various payment sources have very different implications for both vertical and horizontal equity and on redistributive effect which is a function of both. This paper presents results on the income redistribution consequences of the health care financing mixes adopted in twelve OECD countries by decomposing the overall income redistributive effect into a progressivity, horizontal inequity and reranking component. The general finding of this study is that the vertical effect is much more important than horizontal inequity and reranking in determining the overall redistributive... (More)

The OECD countries finance their health care through a mixture of taxes, social insurance contributions, private insurance premiums and out-of-pocket payments. The various payment sources have very different implications for both vertical and horizontal equity and on redistributive effect which is a function of both. This paper presents results on the income redistribution consequences of the health care financing mixes adopted in twelve OECD countries by decomposing the overall income redistributive effect into a progressivity, horizontal inequity and reranking component. The general finding of this study is that the vertical effect is much more important than horizontal inequity and reranking in determining the overall redistributive effect but that their relative importance varies by source of payment. Public finance sources tend to have small positive redistributive effects and less differential treatment while private financing sources generally have (larger) negative redistributive effects which are to a substantial degree caused by differential treatment.

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type
Contribution to journal
publication status
published
subject
keywords
Health care financing, Horizontal equity, Progressivity, Redistributive effect, Reranking
in
Journal of Health Economics
volume
18
issue
3
pages
23 pages
publisher
Elsevier
external identifiers
  • scopus:0033016597
ISSN
0167-6296
DOI
10.1016/S0167-6296(98)00043-5
language
English
LU publication?
no
id
4b9c19c7-0bfc-44ac-b921-1f8f15f21e3d
date added to LUP
2018-10-09 12:22:32
date last changed
2019-01-14 07:39:59
@article{4b9c19c7-0bfc-44ac-b921-1f8f15f21e3d,
  abstract     = {<p>The OECD countries finance their health care through a mixture of taxes, social insurance contributions, private insurance premiums and out-of-pocket payments. The various payment sources have very different implications for both vertical and horizontal equity and on redistributive effect which is a function of both. This paper presents results on the income redistribution consequences of the health care financing mixes adopted in twelve OECD countries by decomposing the overall income redistributive effect into a progressivity, horizontal inequity and reranking component. The general finding of this study is that the vertical effect is much more important than horizontal inequity and reranking in determining the overall redistributive effect but that their relative importance varies by source of payment. Public finance sources tend to have small positive redistributive effects and less differential treatment while private financing sources generally have (larger) negative redistributive effects which are to a substantial degree caused by differential treatment.</p>},
  author       = {Van Doorslaer, Eddy and Wagstaff, Adam and Van Der Burg, Hattem and Christiansen, Terkel and Citoni, Guido and Di Biase, Rita and Gerdtham, Ulf G. and Gerfin, Mike and Gross, Lorna and Häkinnen, Unto and John, Jürgen and Johnson, Paul and Klavus, Jan and Lachaud, Claire and Lauritsen, Jørgen and Leu, Robert and Nolan, Brian and Pereira, João and Propper, Carol and Puffer, Frank and Rochaix, Lise and Schellhorn, Martin and Sundberg, Gun and Winkelhake, Olaf},
  issn         = {0167-6296},
  keyword      = {Health care financing,Horizontal equity,Progressivity,Redistributive effect,Reranking},
  language     = {eng},
  month        = {06},
  number       = {3},
  pages        = {291--313},
  publisher    = {Elsevier},
  series       = {Journal of Health Economics},
  title        = {The redistributive effect of health care finance in twelve OECD countries},
  url          = {http://dx.doi.org/10.1016/S0167-6296(98)00043-5},
  volume       = {18},
  year         = {1999},
}