|
In keeping an
employer payroll tax as the primary financing mechanism rather than direct taxation, the
1993 HIA followed the American model. The benefits of economy of scale in group purchases
of insurance rather than individual policies was built into the mandatory package. In
creating CHI funds, the public administration of private employer premiums was to prevent
escalation of claims processing and administrative overhead costs, curtailing but not
eliminating the growth of private insurance companies. |