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Is Chinese National Health Insurance Effective in the Face of Severe Illness? A Perspective from Health Service Utilization and Economic Burden

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  • Qin Zhou

    (University of International Business and Economics)

  • Gordon G. Liu

    (Peking University)

  • Sam Krumholz

    (University of California, Los Angeles)

Abstract

Over the past decade, health insurance coverage has expanded dramatically in China. Health insurance benefits, however, remain shallow or ambiguous. This study examines the effect of Chinese national health insurance policy on health service utilization and economic burden in urban settings using the Urban Resident Basic Medical Insurance Household Survey. We employ the Heckman selection model to correct for selection bias among hospital inpatients, and find that compared to individuals without health insurance, those with health insurance are more likely to be admitted to the hospital when their physicians recommended them to enter the hospital as inpatients. Health insurance is also associated with about 45.6 % decrease in out-of-pocket inpatient expenditures. Individuals with urban employee basic medical insurance see the largest decrease in economic burden, followed by individuals with urban resident basic medical Insurance, and those with new rural cooperative medical insurance.

Suggested Citation

  • Qin Zhou & Gordon G. Liu & Sam Krumholz, 2017. "Is Chinese National Health Insurance Effective in the Face of Severe Illness? A Perspective from Health Service Utilization and Economic Burden," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1307-1329, July.
    • Handle: RePEc:spr:soinre:v:132:y:2017:i:3:d:10.1007_s11205-016-1330-5
    DOI: 10.1007/s11205-016-1330-5
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    Cited by:

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    2. Bocong Yuan & Jiachun Fang & Jiannan Li & Fei Peng, 2022. "Chronic patients as retirement-aged workers: the impact of employment-based health insurance and chronic conditions on health-related working capacity and late-life career participation," European Journal of Ageing, Springer, vol. 19(4), pages 1351-1362, December.

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    More about this item

    Keywords

    Health insurance; Economic burden; Health service utilization; Heckman selection model; China;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D10 - Microeconomics - - Household Behavior - - - General

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