Are more generous health insurance positively associated with health outcomes of the elderly? evidence from China

Jusheng Shieh, Xin-peng Xu, Hua You and Qi-feng Wu

Journal of the Asia Pacific Economy, 2024, vol. 29, issue 3, 1368-1387

Abstract: In China, Catastrophic Medical Insurance (CMI) has been piloted since 2012. Few research have examined the relationship between CMI and the health of the elderly, with the majority focusing on its effect on economic risks. This study utilized Chinese Longitudinal Healthy Longevity Survey (CLHLS) data to investigate the relationship between CMI and health of the elderly. Difference-in-differences, Propensity score matching-difference in differences and Heckman selection model were employed to study the association between CMI and health, and its potential mechanisms, respectively. It was discovered that CMI was positively associated with the mental health of the elderly to a limited level. The positive association between CMI and health of the elderly was primarily observed in rural and higher-income populations. After the implementation of CMI, the increased accessibility of hospitalization care for the elderly may account for the improvement in their mental health. The health promotion effect and equity of CMI merit additional consideration, and the compensation level of CMI might be enhanced by expanding the compensation catalog and increasing in the reimbursement rate accordingly.

Date: 2024
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DOI: 10.1080/13547860.2023.2186020

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