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Effects of NCMS Coverage on Access to Care and Financial Protection in China

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Author Info

  • Zhiyuan Hou

    (Shandong University, Jinan, China)

  • Ellen Van de Poel

    (Erasmus University Rotterdam, Netherlands)

  • Eddy Van Doorslaer

    (Erasmus University Rotterdam, Netherlands)

  • Baorong Yua

    (Shandong University, Jinan, China)

  • Qingyue Menge

    (Peking University, China)

Abstract

The introduction of the New Cooperative Medical Scheme in rural China is one of the largest health care reforms in the developing world since the millennium. The literature to date has mainly used the uneven rollout of NCMS across counties as a way of identifying its effects on access to care and financial protection. This study exploits the cross-county variation in NCMS generosity in 2006 and 2008 in Ningxia and Shandong province and adopts an instrumenting approach to estimate the effect of a continuous measure of coverage level. Our results confirm earlier findings of NCMS being effective in increasing access to care, but not increasing financial protection. In addition, we find that NCMS enrollees are sensitive to the incentives set in the NCMS design when choosing their provider, but also that providers seem to respond by increasing prices and/or providing more expensive care.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-039/3.

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Date of creation: 16 Apr 2012
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Handle: RePEc:dgr:uvatin:20120039

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Keywords: Health insurance; access; financial protection; China;

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  1. Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.
  2. Willard G. Manning & John Mullahy, 1999. "Estimating Log Models: To Transform or Not to Transform?," NBER Technical Working Papers 0246, National Bureau of Economic Research, Inc.
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