An Exploratory Study on the Measurement of Equity in Contribution System of National Health Insurance: Focused on the Application of Palma Ratio
Title
An Exploratory Study on the Measurement of Equity in Contribution System of National Health Insurance: Focused on the Application of Palma Ratio
Author(s)
남재욱
Keyword
건강보험
; 부과체계
; 형평성
; Kakwani 지수
; Palma 비율
; Health Insurance
; Contribution System
; Equity
; Kakwani Index
; Palma Ratio
Publication Year
2014-12-30
Publisher
Korea Institute for Health and Social Affairs
Citation
Health and Social Welfare Review Vol.34 No.4, pp.36-67
Abstract
The aim of this study is to explore an alternative measurement of equity in contribution system of NHI with analyzing Kakwani index. Kakwani index, based on Gini-style indices, has been widely used to measure the equity of health financing or taxes. Nevertheless, it is more sensitive to the middle class than high-income or low-income class just like Gini coefficient. This causes the necessity to develop an alternative index to focus on the tails. This study suggests an alternative method to complement Kakwani index applying the Palma ratio. Furthermore, it will be examined by empirical research. The results are following. First, the distribution of health insurance contributions is stable in the middle class, while variative in the high and low classes. Therefore, it is necessary to find an alternative measurement. Second, The Palma index, which is developed from the Palma ratio, has similar trend to Kakwani index, but is more sensitive to the tails. This means it can complement Kakwani index. The significance of this study is in the exploration of a new measurement of health insurance financing or taxes. Nevertheless, it is necessary to be supported by more empirical researches.