Impact of China's Urban Resident Basic Medical Insurance on Health Care Utilization and Expenditure

36 Pages Posted: 6 Oct 2012 Last revised: 16 Apr 2023

See all articles by Hong Liu

Hong Liu

Washington University in St. Louis - Olin Business School; Fudan University - China Institute of Economics and Finance

Hong Liu

Central University of Finance and Economics (CUFE)

Zhong Zhao

Institute for the Study of Labor (IZA); Renmin University of China

Abstract

In 2007, China launched a subsidized voluntary public health insurance program, the Urban Resident Basic Medical Insurance, for urban residents without formal employment, including children, the elderly, and other unemployed urban residents. We estimate the impact of this program on health care utilization and expenditure using 2006 and 2009 waves of the China Health and Nutrition Survey. We find that this program has significantly increased the utilization of formal medical services. This result is robust to various specifications and multiple estimation strategies. However, there is no evidence that it has reduced out-of-pocket expenditure and some evidence suggesting that it has increased the total health care expenditure. We also find that this program has improved medical care utilization more for the elderly, for the low- and middle-income families, and for the residents in the relatively poor western region.

Keywords: health care utilization, health insurance, health expenditure, urban China

JEL Classification: I13, G22, H43

Suggested Citation

Liu, Hong and Liu, Hong and Zhao, Zhong, Impact of China's Urban Resident Basic Medical Insurance on Health Care Utilization and Expenditure. IZA Discussion Paper No. 6768, Available at SSRN: https://ssrn.com/abstract=2157910 or http://dx.doi.org/10.2139/ssrn.2157910

Hong Liu (Contact Author)

Washington University in St. Louis - Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States
314-935-5883 (Phone)

Fudan University - China Institute of Economics and Finance ( email )

China

Hong Liu

Central University of Finance and Economics (CUFE)

Beijing, Beijing
China

Zhong Zhao

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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