Topic:Expenditure response to patient cost-sharing:Evidence from China's New Cooperative Medical Scheme

Lecturer:Hong Liu

Hong Liu is currently a professor at the School of Labor and Human Resources,Renmin University of China.Her research interests include medical security,pension security,health economics,labor economics and applied micrometrology.In the Journal of Development Economics,Journal of Health Economics.Social Science & Medicine.Journal of Economics Behavior &  Organization,Journal of Comparative Economics,Journal of Population Economics,Economic Research.She has published more than 40 papers in first-class economic academic journals at home and abroad,such as "Management World", "Economics (Quarterly)", "World Economy", "China Rural Economy", "Finance and Trade Economy", and presided over a number of projects such as National Natural Science Foundation project, youth project, National Social Science major project sub-project and provincial and ministerial projects.

Abstract:

This study investigates healthcare expenditure responses to cost-sharing reduction in rural China.Using administrative claims data,we exploit a quasi-experimental setting under the New Cooperative Medical Scheme and identify the effect of Cost-sharing using a difference-in-differences strategy.We find an overall price elasticity of inpatient expenditure of-0.632,of which the extensive margin and intensive margin elasticities are-0.407 and -0.225,respectively.Expenditure responses on the extensive margin are heterogeneous by patient age,health,and poverty status.Further analyses suggest that providers' financial incentives play a role in the intensive margin responses.We also find a reduction in rural residents exposure to out-of-pocket expenditure risk after the cost-sharing reduction.Our findings can help policymakers in developing countries enhance financial protection for low-income people and design effective cost control policies.

Time:2:00-3:00p.m,June 14th,2024

Venue:B423,Zhixin Building,Central Campus