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Health Insurance: Better Modelling Unravels Contradictory Choices
With trends that seem counter-intuitive, predicting the take-up of
private health insurance can be tricky. People with private insurance
are less likely to be in poor health and have fewer long-term health
conditions than those who rely on the public system. But there are
methods for modelling choice behaviours and policy-makers would do well
to employ them, argues Michael Keane, an economics professor at the
Australian School of Business. Attempts to control hospital waiting
times through the private health insurance market are unlikely to be
successful. Insurance take-up seems driven by the mixed motives of risk
aversion, cognitive ability and income.
View all episodes
By theBoxWith trends that seem counter-intuitive, predicting the take-up of
private health insurance can be tricky. People with private insurance
are less likely to be in poor health and have fewer long-term health
conditions than those who rely on the public system. But there are
methods for modelling choice behaviours and policy-makers would do well
to employ them, argues Michael Keane, an economics professor at the
Australian School of Business. Attempts to control hospital waiting
times through the private health insurance market are unlikely to be
successful. Insurance take-up seems driven by the mixed motives of risk
aversion, cognitive ability and income.
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