Abstract
About 40% of the Danish adult population carry some kind of voluntary health insurance, far more than in the other Scandinavian countries. This somewhat paradoxical situation in a tax financed system with large free and equal access is analysed, both from the demand and the supply side. Based on a representative year 2000 survey the determinants of insurance coverage and the effects on utilization of holding VHI is analysed statistically. There are few statistically significant gradients distinguishing insured from non-insured. the theoretically expected effects of insurance are observed. on the supply side the widespread VHI, in particular those covering elective surgery, have not been sufficient to develop a sustainable and significant private for-profit hospital sector.
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