Welfare consequences of access to health insurance for rural households: Evidence from the New Cooperative Medical Scheme in China.

Abstract:

:This study evaluates the welfare benefits of the New Cooperative Medical Scheme (NCMS), the main public health insurance plan for the rural population in China. The findings show that the value of the NCMS to recipients is slightly lower than the government's costs of implementation, ranging from 0.79 to 0.97 per RMB of the resource cost of the NCMS. The estimated moral hazard costs are low compared with the total benefits. It is also estimated that the benefits originating from the NCMS's insurance function only constitute 20% of the total benefits, suggesting a need for higher generosity levels among rural households. Our results shed new light on the welfare effects of access health insurance among low- and middle-income households.

journal_name

Health Econ

journal_title

Health economics

authors

Sun JY

doi

10.1002/hec.3985

subject

Has Abstract

pub_date

2020-03-01 00:00:00

pages

337-352

issue

3

eissn

1057-9230

issn

1099-1050

journal_volume

29

pub_type

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