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KMID : 1170320030090020001
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Korean Journal of Health Economics and Policy
2003 Volume.9 No. 2 p.1 ~ p.11
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Equity in Health Care Financing
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Yang Bong-Min
Kwon Soon-Man
Lee Tae-Jin
Oh Ju-Whan
Lee Sue-Hyung
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Abstract
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As a measure of vertical equity, progressivity of health care finance was measured, based on tabulations of health care payments by income group. It was estimated by Kakwani index, which is a combination of concentration index for payment and Gini coefficient of prepayment income. Urban household income/expenditure data of 1996?2000 (National Statistical Office, various years) was used for estimation of Kakwani index. The result shows that total health care payment of Koreans are regressive for all the years, but the level of regressivity gradually decreases over time. Like Netherland and Germany, and unlike other European countries, social insurance emerges as regressive in Korea, due to
the upper limit of insurance contributions and the unique financing mechanism for selfemployed. It is interesting to note that indirect taxes are progressive for all the years. This is because a good portion of indirect taxes is in the form of special luxury taxes which are levied on items that upper income group more likely to purchase.
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KEYWORD
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Progressivity, Kakwani index, Out of pocket payment, Social insurance
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