Countries that seek to provide universal health coverage deal with considerable publicly funded expenses. This article discusses if a private health insurance subsidy policy can reduce the expenses covered by the public system. A theoretical model is developed in which individuals are...

Quantity rationing is widely used by the traditional literature on public health care expenditure determination as a means to justify the coexistence of the private health care sector. However, this artefact is not suitable for a wide range of health care services that have an "all or nothing"...