Question

Is reduction of public health insurance rebate for selected group of insurers a better option or getting rid of the rebate altogether a better option? comment on it the benefits, costs & welfare gains related to change in insurance coverage?

Answer 1

A reduction in public health insurance rebate for selected group of insurers a better option than getting rid of the rebate altogether a better option. As reduction of certain group would affect the goodwill of the Govt. but removing it from the whole will for sure bring the Govt. ,in a bad reputation.

Rebate would seek the welfare of the Govt. from a large section of the citizenship and hence the socialism feature of the centre would remain intact.