Research On The NCMS Effects On Rural Residents’ Medical Expenses And The Influence Factor Of Whether Rural Resident Take Part In The NCMS

At the end of the last century, China began to establish a basic medical insurance system. the system is designed to reduce the health care cost of residents. The new rural cooperative medical insurance system established in 2002, the medical insurance system for urban workers, established in 1998, the medical insurance system for urban residents established in 2007, which constitute the troika of China’s basic medical insurance system. However, from the individual’s perspective, whether the basic medical insurance system really reduce the burden of medical expenses of residents, thereby improving the living standards of residents, this issue needs to be answered. In this paper, we use a database on China Health and Nutrition Survey (CHNS) panel data to do empirical analysis. Our analysis found that after participating in the new rural cooperative medical insurance, medical expenses of rural residents was significantly decreased, while urban residents medical insurance and medical insurance for urban workers is not so. Furthermore, we conducted a study on the factors which infulence rural residents to decide whether to participate in the new rural cooperative medical care. We found that the number of family members, as well as family income, significantly affecting rural residents to choose whether to participate in the new rural cooperative medical insurance system. Meanwhile, we find individual education level and marital status also significantly influence the choice of rural residents. Based on the above two empirical studies, we explain the mechanism of NCMS. We also explain the factors which infulence rural residents to decide whether to participate in the new rural cooperative medical care. On the basis of the above analysis, we draw the conclusions and policy recommendations.