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

Tinbergen Institute Discussion Paper 12-039/3

38 Pages Posted: 17 Apr 2012

See all articles by Zhiyuan Hou

Zhiyuan Hou

affiliation not provided to SSRN

Ellen van de Poel

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Eddy van Doorslaer

Erasmus School of Economics

Baorong Yua

Shandong University

Qingyue Menge

Peking University

Date Written: April 16, 2012

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.

Keywords: Health insurance, access, financial protection, China

JEL Classification: D63, I14

Suggested Citation

Hou, Zhiyuan and van de Poel, Ellen and van Doorslaer, Eddy and Yua, Baorong and Menge, Qingyue, Effects of NCMS Coverage on Access to Care and Financial Protection in China (April 16, 2012). Tinbergen Institute Discussion Paper 12-039/3. Available at SSRN: https://ssrn.com/abstract=2040701 or http://dx.doi.org/10.2139/ssrn.2040701

Zhiyuan Hou (Contact Author)

affiliation not provided to SSRN ( email )

Ellen Van de Poel

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Eddy Van Doorslaer

Erasmus School of Economics ( email )

Netherlands

Baorong Yua

Shandong University ( email )

27 Shanda Nanlu
South Rd.
Jinan, Shandong 250100
China

Qingyue Menge

Peking University ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

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