IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v12y2025i1d10.1057_s41599-024-04295-5.html

Nip it in the bud: the impact of China’s large-scale free physical examination program on health care expenditures for elderly people

Author

Listed:
  • Qingshan Ma

    (Xiamen University)

  • Yuanmeng Zhang

    (Tsinghua University)

  • Feng Hu

    (Shanghai University of International Business and Economics)

  • Haiyan Zhou

    (Nueva Ecija University of Science and Technology)

  • Hao Hu

    (Shanghai University)

Abstract

In this study, we take China’s large-scale free physical examination program for people aged 65 and above as an entry point and use data from the China Health and Retirement Longitudinal Study (CHARLS) between 2011 and 2018 to construct a staggered difference-in-differences (DID) model to examine whether the free physical examination program affected elderly individuals’ health care expenditures. We find that the program increased the probability of attending a physical examination by 4.3%, reduced overall medical expenditures by 28.4%, and reduced hospitalization costs by 22.1% for persons over 65 years of age but did not have a significant effect on outpatient expenditures. The program produces results through two mechanisms: disease prevention and disease screening. The program is more effective in reducing medical expenses for older adults who live in rural areas, are younger, have lower educational levels, and have chronic illnesses. The benefits of the program’s implementation far outweigh its costs.

Suggested Citation

  • Qingshan Ma & Yuanmeng Zhang & Feng Hu & Haiyan Zhou & Hao Hu, 2025. "Nip it in the bud: the impact of China’s large-scale free physical examination program on health care expenditures for elderly people," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-16, December.
  • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-024-04295-5
    DOI: 10.1057/s41599-024-04295-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-04295-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41599-024-04295-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ye, Zihan & Zou, Xiaopeng & Post, Thomas & Mo, Weiqiao & Yang, Qianqian, 2022. "Too old to plan? Age identity and financial planning among the older population of China," China Economic Review, Elsevier, vol. 73(C).
    2. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    3. Masaki Takahashi, 2023. "Insurance coverage, long-term care utilization, and health outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(8), pages 1383-1397, November.
    4. Qing Luo & Haichao Ma & Huinan Wang, 2023. "The Impact of Population Aging on the Economic Growth of China," Springer Books, in: Yining Li & Qiuyun Zhao & Zhiqiang Cheng (ed.), China's Road and Aging Population, pages 73-93, Springer.
    5. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    6. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    7. Davide Cantoni & Yuyu Chen & David Y. Yang & Noam Yuchtman & Y. Jane Zhang, 2017. "Curriculum and Ideology," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 338-392.
    8. Yongzheng Liu & Jie Mao, 2019. "How Do Tax Incentives Affect Investment and Productivity? Firm-Level Evidence from China," American Economic Journal: Economic Policy, American Economic Association, vol. 11(3), pages 261-291, August.
    9. Kranker, Keith, 2016. "Effects of Medicaid disease management programs on medical expenditures: Evidence from a natural experiment in Georgia," Journal of Health Economics, Elsevier, vol. 46(C), pages 52-69.
    10. Shi, Xinjie & Shen, Yu & Song, Ran, 2023. "Living with particles: Disclosure of pollution information, individual responses, and health consequences," Journal of Health Economics, Elsevier, vol. 92(C).
    11. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    12. Kim, Hyuncheol Bryant & Lee, Suejin A. & Lim, Wilfredo, 2019. "Knowing is not half the battle: Impacts of information from the National Health Screening Program in Korea," Journal of Health Economics, Elsevier, vol. 65(C), pages 1-14.
    13. Franz Hackl & Martin Halla & Michael Hummer & Gerald J. Pruckner, 2015. "The Effectiveness of Health Screening," Health Economics, John Wiley & Sons, Ltd., vol. 24(8), pages 913-935, August.
    14. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    15. Lange, Fabian, 2011. "The role of education in complex health decisions: Evidence from cancer screening," Journal of Health Economics, Elsevier, vol. 30(1), pages 43-54, January.
    16. Nicole Maestas & Kathleen J. Mullen & David Powell, 2023. "The Effect of Population Aging on Economic Growth, the Labor Force, and Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 306-332, April.
    17. Baker, Andrew C. & Larcker, David F. & Wang, Charles C.Y., 2022. "How much should we trust staggered difference-in-differences estimates?," Journal of Financial Economics, Elsevier, vol. 144(2), pages 370-395.
    18. Iizuka, Toshiaki & Nishiyama, Katsuhiko & Chen, Brian & Eggleston, Karen, 2021. "False alarm? Estimating the marginal value of health signals," Journal of Public Economics, Elsevier, vol. 195(C).
    19. German, P.S. & Burton, L.C. & Shapiro, S. & Steinwachs, D.M. & Tsuji, I. & Paglia, M.J. & Damiano, A.M., 1995. "Extended coverage for preventive services for the elderly: Response and results in a demonstration population," American Journal of Public Health, American Public Health Association, vol. 85(3), pages 379-386.
    20. Li, Pei & Lu, Yi & Wang, Jin, 2016. "Does flattening government improve economic performance? Evidence from China," Journal of Development Economics, Elsevier, vol. 123(C), pages 18-37.
    21. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
    22. Ding, Xiangyuan & Yuan, Luoqi & Zhou, Yi, 2023. "Internet access and older adults' health: Evidence from China," China Economic Review, Elsevier, vol. 82(C).
    23. Chen, Yu & Shi, Shaobin & Tang, Yugang, 2019. "Valuing the urban hukou in China: Evidence from a regression discontinuity design for housing prices," Journal of Development Economics, Elsevier, vol. 141(C).
    24. Davide Cantoni & Yuyu Chen & David Y. Yang & Noam Yuchtman & Y. Jane Zhang, 2017. "Curriculum and Ideology," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 338-392.
    25. Zhao, Meng & Konishi, Yoshifumi & Glewwe, Paul, 2013. "Does information on health status lead to a healthier lifestyle? Evidence from China on the effect of hypertension diagnosis on food consumption," Journal of Health Economics, Elsevier, vol. 32(2), pages 367-385.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen Fang & Sijing Fan & Hongyun Zheng & Zijian Fang & Yanwei You & Bo Yin & Baixia Li & Xinming Ye, 2025. "How to improve mental health in the older adults through AI-enhanced physical activity: an emerging research topic," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    2. Mingcong, Chen & Qingshan, Ma & Qiqi, Sun, 2025. "The impact of food safety regulation on the health of middle-aged and older adults: Evidence from Chinese food safety pilot cities," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1182-1197.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ma, Qingshan & Han, Yuqing & Chen, Mingcong & Hu, Feng & Zhou, Haiyan, 2026. "The impact of a large-scale chronic disease prevention and control program on the health benefits of older adults: Evidence from a natural experiment in China," China Economic Review, Elsevier, vol. 95(C).
    2. Mingcong, Chen & Qingshan, Ma & Qiqi, Sun, 2025. "The impact of food safety regulation on the health of middle-aged and older adults: Evidence from Chinese food safety pilot cities," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1182-1197.
    3. Nuoyan Li & Liangjian Wang & Qilin Zhang & Huwei Wen, 2025. "Low-carbon policy and employment: heterogeneity of workers with different skills," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(11), pages 26761-26781, November.
    4. Lin, Xin & Hui, Eddie Chi-man & Cong, Zhenglong & Shen, Jianfu, 2026. "Solving coordination failures: Collective land transfer rights and rural entrepreneurship," Journal of Development Economics, Elsevier, vol. 178(C).
    5. Duan, Wenqi & Jiang, Mingming & Qi, Jianhong, 2024. "Poverty or pollution: The environmental cost of E-commerce for poverty reduction in China," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    6. Zuo, Wenbin & Chen, Fanglin, 2025. "Airports and regional inequality: Evidence from China," Transport Policy, Elsevier, vol. 174(C).
    7. Changteng Nie & Jianxiang Wan, 2023. "How Does Internet Infrastructure Construction Affect the Urban–Rural Income Gap? Evidence from a Quasi-Natural Experiment in China," Progress in Development Studies, , vol. 23(3), pages 317-337, July.
    8. Li, Yutao & Zhang, Jinning & Lyu, Yanwei, 2023. "Does telecommunications infrastructure promote entrepreneurship in developing countries? Evidence from a quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 106-119.
    9. Wang, Zhiwei & Zhang, Xianfeng & Ding, Chenxin & Sun, Hui, 2025. "Can digital environmental monitoring alleviate environmental inequality? Evidence from ambient air quality standards in China," Energy Policy, Elsevier, vol. 207(C).
    10. Tan, Xiujie & Xiao, Ziwei & Liu, Yishuang & Taghizadeh-Hesary, Farhad & Wang, Banban & Dong, Hanmin, 2022. "The effect of green credit policy on energy efficiency: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    11. Zhu, Junjie & Guo, Hongfeng, 2025. "Does the development of high-speed rail benefit carbon emissions reduction?," Transport Policy, Elsevier, vol. 172(C).
    12. Zou, Tao & Li, Shasha & Dai, Yixin, 2025. "Does the pilot free trade zone promote “quality improvement and quantity increase” of the city’s export trade?," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1323-1341.
    13. Oikawa, M., 2020. "The effect of education on health policy reform: Evidence from Japan," Health, Econometrics and Data Group (HEDG) Working Papers 20/08, HEDG, c/o Department of Economics, University of York.
    14. Ma, Rui & Guo, Fei & Li, Dongdong, 2024. "Can public data availability affect stock price crash risk? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 94(C).
    15. Bo, Shiyu & Wang, Yi, 2025. "The labor market outcomes of jurisdictional consolidation: Evidence from city–county mergers in China," Journal of Urban Economics, Elsevier, vol. 149(C).
    16. Xufei Zhang & Hongsheng Fang & Lin Guo, 2023. "Corporate Endowment Insurance Fee Reduction and Employee Wages: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(2), pages 192-222, March.
    17. Chen, Hongwen & Cheng, Ken & Zhang, Meiyang, 2023. "Does geographic proximity affect firms’ cross-regional development? Evidence from high-speed rail construction in China," Economic Modelling, Elsevier, vol. 126(C).
    18. Wu, Maozhen & Zhang, Penglong, 2024. "Poverty alleviation and pollution reduction: Evidence from the poverty hat removal program in China," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 56-76.
    19. Xue, Fei, 2024. "Driving economic transition: The impact of cross-border e-commerce policy on the upgrading of service industry structure," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 941-956.
    20. Xu, Lan & Cheng, Jixin & Hu, Dongbin, 2025. "The impact of digitalization progress on carbon abatement costs: Cheaper or more expensive?," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 383-400.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-024-04295-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/palcomms/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.