Publication Type
Journal Article
Version
acceptedVersion
Publication Date
3-2020
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.
Keywords
China, health insurance, New Cooperative Medical Scheme, welfare analysis
Discipline
Asian Studies | Health Economics
Research Areas
Applied Microeconomics
Publication
Health Economics
Volume
29
Issue
3
First Page
337
Last Page
352
ISSN
1057-9230
Identifier
10.1002/hec.3985
Publisher
Wiley
Embargo Period
5-30-2021
Citation
SUN, Jessica Ya.
Welfare consequences of access to health insurance for rural households: Evidence from the New Cooperative Medical Scheme in China. (2020). Health Economics. 29, (3), 337-352.
Available at: https://ink.library.smu.edu.sg/soe_research/2477
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1002/hec.3985