Does basic medical insurance promote public health? Evidence from China family panel study

Abstract

BackgroundTo promote common prosperity, China government has devoted much financial resources to the basic medical insurance system, it is of great significance to improve the health level of the insured groups to prevent them from returning to poverty due to illness. Whether or not the basic medical insurance can improve health status is an important policy issue after China has win the absolute poverty alleviation movement.MethodsBased on the data of China Family Panel Studies this paper constructs a strong balanced panel data with two levels information, which including variables from family level and personal level. This paper uses the panel data fixed effect model and propensity score matching model to analysis.ResultsThis paper finds that after controlling the family and personal confounding variables, the basic medical insurance has positive effect toward health status. With propensity score matching model, this paper finds that there is causality between basic medical insurance and public health.ConclusionBasic medical insurance has a significant health effect, that is, basic medical insurance has a significant positive impact on individual self-rated health. Participating in basic medical insurance can significantly improve the ability of families to face risk shocks, promote the accumulation of health capital in families, promote the diversification of livelihood strategies, and effectively prevent the occurrence of returning to poverty due to illness.

The impact of digital finance on young People’s health insurance participation decisions in China

“…Meanwhile, the chances of ‘both-participation’ are higher for individuals with poor self-rated health than for those with good self-rated health. A possible reason is that people with poor self-rated health have a lower threshold for anticipated health risks and greater rational anxiety about self- and family-protection ( 44 ). Digital finance has increased the choice and protection dimension of health insurance, improved the convenience of insurance services and the availability of potential funds, increasing the ability of youth to manage health risks.…”

Medical insurance, vulnerability to poverty, and wealth inequality

“…Several studies have deeply explored the impact of medical insurance on poverty alleviation. Participation in medical insurance can enhance a household’s nonmedical consumption ( 9 ), reduce excessive labor supply and out-of-pocket medical expenses ( 10 , 11 ), improve residents’ health conditions ( 1 , 12 ) and reduce mortality rates ( 13 ). Further studies show that participation in medical insurance can stabilize household income ( 10 ) and enhance social welfare ( 14 ).…”