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Heterogeneous Impacts of Basic Social Health Insurance on Medical Expenditure: Evidence from China’s New Cooperative Medical Scheme

1
Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China
2
School of Finance, Nanjing Audit University, Nanjing 211815, China
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Rural Education Action Program, Freeman Spogli Institute for International Studies, Stanford University, Stanford, CA 94305, USA
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Department of Statistics, University of British Columbia, Vancouver, BC V6T1Z4, Canada
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Institute for Social and Economic Research, Nanjing Audit University, Nanjing 211815, China
*
Author to whom correspondence should be addressed.
Healthcare 2019, 7(4), 131; https://doi.org/10.3390/healthcare7040131
Received: 17 October 2019 / Revised: 27 October 2019 / Accepted: 1 November 2019 / Published: 3 November 2019
This paper examines the effects of China’s New Cooperative Medical Scheme (NCMS) on medical expenditure. Utilizing the quasi-random rollout of the NCMS for a difference-in-difference analysis, we find that the NCMS increased medical expenditure by 12.3%. Most significantly, the good-health group witnessed a 22.1% rise in medical expenditure, and the high-income group saw a rise of 20.6%. The effects, however, were not significant among the poor-health or low-income groups. The findings are suggestive of the need for more help for the very poor and less healthy.
Keywords: New Cooperative Medical Scheme (NCMS); medical expenditure; health insurance; China New Cooperative Medical Scheme (NCMS); medical expenditure; health insurance; China
MDPI and ACS Style

Fang, C.; He, C.; Rozelle, S.; Shi, Q.; Sun, J.; Yu, N. Heterogeneous Impacts of Basic Social Health Insurance on Medical Expenditure: Evidence from China’s New Cooperative Medical Scheme. Healthcare 2019, 7, 131.

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