Progressivity Analysis On Health Care Financing Of Gansu Province

Objective Through investigating the information of the investigated areas, we carried out the surveys on total expenditure on health in Gansu province and used the data of'National health Services Survey'of the province to measure progressivity of every health care finance source and evaluate the distribution and equity extent of health expenditure between different economic level groups, and make some in-depth discussion based on the research results. Materials and Methods From the respondents of National health Services Survey, we learn the information of household consumption or income, health expenditure, the payment of consumable goods and so on in the year of 2002 and 2007. Through Investigated Agency information, we collect the information of National Health Account, health expenditure, financial revenue and expenditure and the tax rate. Results (1) In absolute terms, the burden of all health sources expenditure are heavily concentrated on the better-off. (2) Relative to ability to pay, the Kakwani indices of tax are negative but very close to 0, indicating proportionality and equity in current situation. (3) Kakwani indices of social insurance are significantly positive, indicating equity effectively, while the Kakwani indices of New Cooperative Medical Scheme are negative, indicating inequity. (4) Kakwani indices of out-of-pocket are positive, indicating inequity in term of its character. (5) In the view of time series, the Kakwani indices of tax keep stable. In urban areas, the Kakwani indices of social insurance arise, indicating the effect of health insurance improves, while the effect reduces in rural areas. Kakwani indices of out-of-pocket drop, indicating its equitable trendency. Conclusion In order to improve the extent of equity, we should attach significance to health source of tax and health insurance and change the financing mode of New Cooperative Medical Scheme. Meanwhile, for the purpose of reducing health financing burden, we suggest that people focus on pre-payment, not direct payment for health care.