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Catastrophic Outpatient Health Payments and Health Payment-induced Poverty under China's New Rural Cooperative Medical Scheme

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  • Wei Yang

Abstract

In 2003, the New Rural Cooperative Medical Scheme (NCMS) was initiated in China to provide rural inhabitants with financial protection against health risks. The benefit package was extended to outpatient care in 2007. Using the China Health and Nutrition Survey of 2009, this paper examines the relationship between the households participating in the NCMS and the level and distribution of catastrophic health payments and health payment-induced poverty resulting from outpatient care. The study finds no significant difference in terms of catastrophic health payments and health payment-induced poverty before and after NCMS reimbursement. The out-of-pocket payments (OOP) are concentrated disproportionately among the poor even after the insurance reimbursement. This heavy burden of OOP payments has become a poverty trap for the poor. This study calls for a more comprehensive insurance and effective insurance package.

Suggested Citation

  • Wei Yang, 2015. "Catastrophic Outpatient Health Payments and Health Payment-induced Poverty under China's New Rural Cooperative Medical Scheme," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(1), pages 64-85.
    • Handle: RePEc:oup:apecpp:v:37:y:2015:i:1:p:64-85.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppu017
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    Cited by:

    1. Jinjing Wu & Shelby Deaton & Boshen Jiao & Zohn Rosen & Peter A Muennig, 2018. "The cost-effectiveness analysis of the New Rural Cooperative Medical Scheme in China," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-13, December.
    2. Fei Xie & Xiaoqing Jiang & Fang Yuan & Xiaoyun Chen & Zhaokang Yuan & Yuanan Lu, 2018. "Impact of the New Cooperative Medical Scheme on the Rural Residents’ Hospitalization Medical Expenses: A Five-Year Survey Study for the Jiangxi Province in China," IJERPH, MDPI, vol. 15(7), pages 1-11, June.
    3. Xiaojun Lu & Qun Wang & Daishuang Wei, 2020. "Do Health Insurance Schemes Heterogeneously Affect Income and Income Distribution? Evidence from Chinese Agricultural Migrants Survey," IJERPH, MDPI, vol. 17(9), pages 1-12, April.

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