Goals/Alternatives Matrix

Two tools were selected from the Australian PHIIS for this analysis to compare with the current arrangement in New Zealand against the criteria of equity, efficiency (assessed as being the effectiveness of the various policies in increasing private health insurance coverage, against the cost to government), and administrative simplicity. Please see below a goals/alternatives matrix constructed to assess between policy tools. See ‘New Zealand’ and ‘Australia’ in the drop-down menu for further explanation.

    Policy Alternatives  
 

Australia

New Zealand

 Criteria

Tax penalty for high earners

Universal 30% subsidy on premiums

Decentralised – no incentives

Equity

HIGH

NEUTRAL

LOW

Efficiency

NEUTRAL

LOW

NEUTRAL

Administrative simplicity

NEUTRAL

LOW

HIGH