Adverse Selection and the Decline in Private Health Insurance Coverage in Australia: 1989-95

18 Pages Posted: 30 Oct 2003

See all articles by Garry F. Barrett

Garry F. Barrett

University of Sydney

Robert Conlon

UNSW Australia Business School, School of Economics

Abstract

The decline in private health insurance coverage over the period 1989-95 is analysed using the ABS National Health Surveys. Individuals' health status and health risk behaviours are found to be significant determinants of their decision to purchase private health insurance. At a point in time, the pool of the insured is very heterogeneous, with a mix of both good and bad health risks. It is found that the decline in insurance coverage over the period 1989-95 coincided with an increase in the degree of 'adverse selection' within the insured population.

Suggested Citation

Barrett, Garry F. and Conlon, Robert, Adverse Selection and the Decline in Private Health Insurance Coverage in Australia: 1989-95. Economic Record, Vol. 79, pp. 279-296, September 2003, Available at SSRN: https://ssrn.com/abstract=443421

Garry F. Barrett (Contact Author)

University of Sydney ( email )

Rm 370 Merewether (H04)
The University of Sydney
Sydney, NSW 2006 2008
Australia

Robert Conlon

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

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