TABLE 4 NEAR HERE
Joined because of LHC
The index individual for joining private health insurance because of Lifetime Health
Cover was a 40 year old married man with one child aged 5-14 years, a non-smoker
with no long-term health conditions, in a professional position with tertiary
qualifications, with an annual wage of $100,000, whose partner is not working and
with no financial assets. The full details of the LHC index individual are listed in
Table 4. The estimated probability of joining because of LHC for the index individual
is 38%, much higher than the overall sample rate of 6%. The probability of joining
prior is also higher for this individual than for the sample rate (55% versus 39%).
TABLE 5 NEAR HERE
The effect of age on the probability of joining because of LHC holding all other
variables at the sample mean, are shown in Figure 1 and the effects of changing the
levels of the index individual are shown in Table 5. To provide a comparison with
those who joined prior Table 5 also shows the changes in probability of having joined
prior for each change in the level of the LHC index individual.
In summary based on the index individual characteristics associated with an increased
probability of having purchased private hospital cover in 2000:
— Being aged 31-45 years
— Having 1 school-aged child
— A single income between $60k and $120k
— No financial assets
— Described their financial circumstances as “just getting by”
— Family member had had a recent injury or illness
— Were born in Australia from a Non-English speaking background or born in
Asia/Pacific region
Being recently married, higher partner’s wages and higher financial assets reduced the
probability of joining because of LHC deadline relative to having already joined
before the introduction of the LHC policy. Having a larger younger family also
decreased the probability of joining because of the LHC deadline relative to having
already joined prior.
Variables that did not affect the probability of joining because of LHC, included
smoking status, having a long term disability or health problem, occupation or
qualifications, reporting being financially worse in the 12 months prior to 2001, or
any changes in income or financial assets following 2001.
Joined After 2000
The index individual for joining private hospital cover after the introduction of
Lifetime Health Cover (Joined After 2000) was a 29 year old male with partner and
no children, a non-smoker, with no long-term health conditions, in a professional
occupation. The full details of the Joined After index individual are listed in Table 4.
The estimated probability of having joined after 2000 for the index individual is 41%.