This paper presents an application of the Urban and Lambert “upgraded-AJL Decomposition” approach
that was designed to deal with the problem of close-income equals in equity analysis, and as applied to
the area of health care finance. Contrary to most previous studies, vertical and horizontal inequities and
the triple effects of inter-groups, intra-group and entire-group reranking of various financing schemes are
estimated, with statistical significance calculated using the bootstrap method. Application is made on the
three financing schemes present in the case of the Occupied Palestinian Territory. Results demonstrate
the relative importance of the three forms of reranking in determining overall inequality. The paper offers
policy recommendations to limit the existing inequalities in the system and to enhance the capacity of
the governmental insurance scheme.