Invites you to a  Microeconometrics & Public Policy seminar presented by

Nathan Kettlewell

(University of Technology Sydney)

Financial incentives and private health insurance demand on the extensive and intensive margins

Friday, 28 April 2023

12.00pm – 1.00pm

Level 6 Seminar Room (650)                                                                                                                                                                              A02 Social Sciences Building                                                                                                                                                        Camperdown Campus
The University of Sydney NSW 2006

Abstract: In countries with dual public/private healthcare systems, individuals are often incentivised to purchase private health insurance through mandates and subsidies. We use administrative data from Australia to study how high-income earners respond to the simultaneous withdrawal of a premium subsidy, and the increase of a tax penalty mandate. These policy changes occur at multiple income levels, and create different incentives at the intensive and extensive margins of insurance coverage. Using a regression discontinuity design, we find evidence that the penalty mandate leads to an increase in take-up of insurance but at the initial threshold only. There is also evidence that people spend more on insurance, which seems to be driven by the extension of insurance to spouses and children.

For further information contact: Microeconometrics & Public Policy Seminar Coordinator Dr Gregor Pfeifer (gregor-gabriel.pfeifer@sydney.edu.au)

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