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The impact of income distribution and use of benefits in healthcare and social welfare

Published 1.1.2024Edited 28.8.2025

In the first phase of the project (2019–2023), an extensive simulation model was built to study the overall effects of legislative amendments on health expenditure on households' social and health care costs and income for the first time.

Research questions The project assesses the allocation of health expenditure and the effects of past and future legislative amendments as follows:

  1. How will potential and actual changes in the legislation on healthcare and social welfare fees affect public finances, the income of population groups, and the imputed need for social assistance?
  2. How will legislative changes affect the use of health and social services and the consumption of medicines?
  3. What kind of income-equalising effect does public social welfare and healthcare expenditure have?

Materials and methods: Statistics Finland's SISU microdata, which combines data from THL's Hilmo, data on Kela's reimbursements for medical care and basic social assistance, plus data from the Kanta Prescription Centre. The method is microsimulation.

Impact: Significant changes to health expenditure legislation are planned in Petteri Orpo's Government Programme. The update of the model enables a preliminary assessment of the impact of these changes.

Researchers

Duration of the project

1 January 2024–31 December 2028

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