The Effect Of Commercial Medical Insurance Under Conditions Of New Rural Cooperative Medical System

The paper is focus on the combined effect of the new rural cooperative medical insurance and commercial medical insurance. And the data selected from "The tracking study for health and endowment" Peking University 2013, is filtrated, organized and statistically interpreted. Thus, the effect model and the multiple liner regression model using filtered data, are built by principal component analysis and factor analysis and the analysis that influences factors, based on the function of expected utility. Those models analyze the factors of medical expenditure for rural cooperative insured people, which highlight the influence of commercial medical insurance on the medical expenditure, in order to verify whether the moral risk existing in the insured people. The results of empirical research are showed below:1.The expected utility of participating both new rural cooperative medical insurance and commercial medical insurance is higher than the expectation of only participating rural cooperative medical insurance.2. Commercial medical insurance holds the greatest utility of reducing hospitalization expense, so for those have bought new rural cooperative medical insurance and need to be in the hospital, purchasing additional commercial medical insurance helps to decrease the medical expenses pressure.3. Moral hazard of commercial medical insurance exists in the rural medical market, which means in the situation of controlling factors like diagnose frequency and health, buying commercial medical insurance leads to increasing medical expense. The analysis of utility and effectiveness of portfolio insurance will provide suggestions on related policy-making to establish a multi-layer medical care insurance system to cover both rural and urban residents. This analysis will also provide suggestions to complete the current system by supplementing various forms medical insurance.