How are government subsidies to truly private insurance schemes recorded?
(See PG 10.19) If an insurance scheme truly is private – that is, not controlled by the government – then the government (or other entity) should be shown as a source of funds for the insurance scheme to the extent of any subsidy. Of course, if the government materially controls the insurance scheme, then the scheme is not truly private and should be treated as an extrabudgetary entity. The total addition to national health expenditure of the insurance scheme is the value of the premiums it earns plus subsidies received to supplement those premiums.
