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The Impact of Long-Term Care Insurance on Medical Utilization and Expenditures: Evidence from Jingmen, China

Author

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  • Xueqin Deng

    (Institute of New Development, Guangdong University of Finance and Economics, Guangzhou 510320, China)

  • Jiaxin Liao

    (Institute of New Development, Guangdong University of Finance and Economics, Guangzhou 510320, China)

  • Rong Peng

    (Institute of New Development, Guangdong University of Finance and Economics, Guangzhou 510320, China)

  • Jiahao Chen

    (Institute of New Development, Guangdong University of Finance and Economics, Guangzhou 510320, China)

Abstract

The purpose of this study was to evaluate the impact of long-term care insurance (LTCI) on medical utilization and expenditures in Jingmen, a pilot city of China. The propensity score matching-difference in difference (PSM-DID) approach was employed to examine the expenses and frequency of inpatient and outpatient services before and after the implementation of the LTCI based on the 2015–2018 panel data from the China Health and Retirement Longitudinal Study (CHARLS). The results showed that the annual expenditure and frequency of the inpatient services of Jingmen residents were reduced by 1923 Yuan (287.0 USD) and 0.24 times, respectively. The impact of the LTCI varied between urban and rural areas. The annual expenditure and frequency of inpatient services in rural areas were reduced by 1600 Yuan (238.8 USD) and 0.30 times, which were lower than those (3400 Yuan (507.5 USD) and 0.20 times) in urban areas. The monthly outpatient expenses and frequency in rural areas were reduced by 300 Yuan (44.8 USD) and 0.14 times, but increased by 555 Yuan (82.8 USD) and 0.07 times in urban area. The findings indicated that the implementation of the LTCI can reduce the medical utilization and expenses, and it had a greater effect in rural areas than in urban areas. It is suggested to promote the LTCI nationwide, and more policy preference should be given to the development of the LTCI in rural areas.

Suggested Citation

  • Xueqin Deng & Jiaxin Liao & Rong Peng & Jiahao Chen, 2022. "The Impact of Long-Term Care Insurance on Medical Utilization and Expenditures: Evidence from Jingmen, China," IJERPH, MDPI, vol. 19(19), pages 1-18, September.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:19:p:12275-:d:926898
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    References listed on IDEAS

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    1. Guangbo Ma & Kun Xu, 2022. "Value-Based Health Care: Long-Term Care Insurance for Out-of-Pocket Medical Expenses and Self-Rated Health," IJERPH, MDPI, vol. 20(1), pages 1-20, December.

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