The economics of a two tier health system: A fairer Medicare? Discussion Paper 478

Centre for Economic Policy Research, Australian National University
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2004, pp. 1 - 24
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This paper analyses a recent proposal of the Australian Government to reform the existing Medicare system. It develops models of the physicians behaviour and of a households demand for medical insurance under the proposed system, and then proceeds to characterise the equilibrium under the new proposals. It argues that those most likely to be made worse off are low income households with children, though a full evaluation of the effects of the proposal requires it to be analysed in a public finance framework.
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