Abstract
The design of national health insurance benefits and financing will have important distributional effects. The current study has developed and applied a framework for assessing alternative plans. Our analysis takes into account the probabilistic character of health expenditures and the joint importance of income and family characteristics. A simulation method for calculating the actuarial value of the benefits of different insurance coverages and different price elasticities of demand is developed. It is implemented with information from a large sample of expenditures and is used to derive distributions for families of different composition. This is combined with an analysis of the incidence of alternative financing plans.
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