Insurance rebates, incentives and primary care in Australia

Connelly, Luke B. and Butler, James R. G. (2012) Insurance rebates, incentives and primary care in Australia. Geneva Papers On Risk and Insurance: Issues and Practice, 37 4: 745-762. doi:10.1057/gpp.2012.40

Author Connelly, Luke B.
Butler, James R. G.
Title Insurance rebates, incentives and primary care in Australia
Journal name Geneva Papers On Risk and Insurance: Issues and Practice   Check publisher's open access policy
ISSN 1018-5895
Publication date 2012-10
Sub-type Article (original research)
DOI 10.1057/gpp.2012.40
Volume 37
Issue 4
Start page 745
End page 762
Total pages 18
Place of publication Hants, United Kingdom
Publisher Palgrave Macmillan
Collection year 2013
Language eng
Formatted abstract
Australia has a universal, compulsory, public health insurance scheme that includes insurance rebates for private fee-for-service medical practitioner services. Recent sweeping changes to the rebates for general practitioner (GP) services provide an opportunity to observe the effects of widespread insurance changes on the behaviour of GPs and aggregate outcomes such as quantities, prices and co-payments. In this paper, we study the effect of two important changes to subsidies for GP services, the first of which increased the rebates payable for services provided to specific patient groups, and the second of which increased rebates payable for all patients. Using economic theory, predictions of the effect of the rebate increase on quantities, prices and co-payments are produced that depend on the structure of the market. Using time-series data, we then present short-run empirical evidence that suggests that the supply curve for GP services is backward-bending.
Keyword Insurance
Industrial organisation
General practice
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2013 Collection
School of Economics Publications
School of Medicine Publications
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Citation counts: TR Web of Science Citation Count  Cited 2 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 1 times in Scopus Article | Citations
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