Long‐term effects of establishing outpatient pooling funds on financial protection: Empirical evidence from a quasi‐natural experiment in China

Tao Zhang and Minyan Chen

International Journal of Health Planning and Management, 2025, vol. 40, issue 1, 204-223

Abstract: Background A limited benefit package for outpatient care in Chinese universal health coverage led to high out‐of‐pocket outpatient payments, and even medical impoverishment. The outpatient pooling fund model was introduced in China's Urban Employee Basic Medical Insurance to reduce cost‐sharing for outpatient care. This study attempts to examine the dynamic effects of the outpatient pooling scheme on financial risk protection for its enrollees. Methods A total of 18,097 individual‐level observations covering 52 prefectures were extracted from six waves of China Health and Nutrition Survey (2000–2015). The difference‐in‐differences model with multiple periods and event study were employed to investigate the dynamic effects of reform on catastrophic health expenditure (CHE) and impoverishing health expenditure (IHE) and potential mechanisms. Results Our results showed outpatient pooling scheme generated a significant effect on reducing the probability of incurring CHE (β = −0.004, 95% CI = −0.009 to −0.006) and IHE (β = −0.007, 95% CI = −0.012 to −0.001), especially for elderly people over 60 years old. The realization of this effect may depend on the reduction of outpatient cost‐sharing, increased outpatient care utilization, as well as decreased inpatient care utilization after reform. However, event study found the effectiveness of outpatient pooling reducing CHE and IHE occurrences appeared to be weak even insignificant in more recent years relative to the initial years of policy implementation. Conclusions Establishing an outpatient pooling system is effective to alleviate the financial risk caused by health expenditures in China. Optimising health service delivery aimed at enhancing health insurance purchasing efficiency are deemed imperative for sustaining the policy effectiveness.

Date: 2025
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