The Macroeconomic Impact of Healthcare Financing Alternatives: Reform Options for Hong Kong SAR

December 1, 2008

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Format: Chicago

The Macroeconomic Impact of Healthcare Financing Alternatives: Reform Options for Hong Kong SAR, (USA: International Monetary Fund, 2008) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

With much healthcare publicly funded, Hong Kong's rapidly aging population will significant raise fiscal pressure over coming decades. We ask what the implications are of meeting these costs by public funding, or private funding voluntarily or through mandates. Our simulations suggest that without early reform, these costs quickly become unsustainable. Prefunding is key. Whether this is done through the public system or through mandatory private provision is less important. Voluntary schemes are likely to result in insufficient savings without tax incentives. Even then, voluntary accounts are unlikely to yield better macroeconomic outcomes, while mandates tend to produce more equitable consumption.

Subject: Consumption, Expenditure, Health care spending, Insurance, Tax incentives

Keywords: Cost, Financing, GDP, Healthcare cost, Spending, WP

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/272
Stock No:

WPIEA2008272
ISBN:

9781451871302
ISSN:

1018-5941

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