Benefit Incidence Analysis Of Government Subsidy Of New Rural Cooperative Medical System

Objective: In this research, we surveyed the farmer who participated the NCMS and the government,Through the Benefit Incidence Analysis (BIA), we measured the distribution of the government subsidy,and estimated their absolute equity and the relative equity. Based on the factor that may influenced we suggested that the government's policy should be more efficiency.Materials and Methods: From the famer who partipciated the NCMS, we learn the information of household members, household consumption or income, health expenditure and other expenditure. From the government of the NCMS, we collected the data of the financing, the using of the government subsidy and the design of the NCMS systerm. Through the Benefit Incidence Analysis (BIA), we analysed the distribution of government subsidy, and estimate their equity among the residents. Resuluts: (1)Through the finacing and compensation of the NCMS,we learned that the government subsidy is in place and on time in sample region.The financing of each person is 100 yuan. Over 93% famers are covered by the NCMS, but the level of finacing and compensation are still very low. (2)The Gini coefficient shows that the gap between rich and poor is very wide; The equity of outpatient subsidy is good among different economic groups, but the in-patient and total subsidy are pro-rich among different economic groups. The poor people shared little subsidy. (3)From the absolute equity side, the concentration index of the out-patient subsidy is negative which means that the equity is good. The concentration index of the in-patient and total subsidy is positive, which shows that the equity of them is bad. (4)From the relative equity side, the Kakwani index of the outpatient subsidy is negative which means that the equity is good. The Kakwani index of the inpatient and total subsidy is positive, which shows that the equity of them is bad. (5)The equity of the government subsidy among Vulnerable population shows that the equity is bad among the poor. (6)The choice of outpatient shows that most people choose basic-level medical institutions,rich people are used to chose higher level hospital; The choice of inpatient shows that the poor are prefer to go to county hospital,the rich are chose higher level hospital; The Benefit rate is 8.17%,which is 2.9 times of the poor;The OOP account family income is from 26.26% to 58.99% among different groups,the rich group is lower than the poor.Conclusion: Compaired with the target, the results shows that the efficiency of the government subsidy is not good.Besides the equity of outpatient subsidy, the equity of the in-patient and total subsidy are bad which means that the subsidy is pro-rich. There are many resaons, such as the problem of NCMS policy design, the lack of policy of aiding to protect the poor.Based on the above, we suggest that the government should give subsidies to the poor directly, perfect the systerm of medical assistance, make the medical service more accessible among the poor, perfect the compensation mode of the out-patient and in-patient.Broaden the financing source, raise the level of compensation.