Study On The Optimization Of Poverty Reduction Mechanism Of China’s Urban And Rural Residents’ Critical Illness Insurance System

Getting rid of poverty has been a long-standing dream of mankind.25 February2021,China has made historic achievements in its fight against poverty.In the current new journey of consolidating the results of poverty eradication and preventing the return of poverty in China,the main task and goal of poverty governance will be how to build a long-term mechanism for poverty governance.Poverty caused by illness and return to poverty is the main constraint to poverty management at present,and also a key obstacle to achieving long-term poverty eradication and sustainable development in China.Therefore,further enhancing the protection capacity of the medical insurance system,especially the protection capacity of major diseases that are prone to high medical expenses,is not only the top priority of the medical insurance system construction,but also the right thing to do to build a long-term mechanism for poverty management.The major illness insurance system for urban and rural residents,established in 2012 and fully implemented since 2015,has played a positive role in combating poverty caused by illness.However,with the continuous development of China’s economy and society,the national macro policy has given new objectives and tasks to the catastrophic insurance,and the catastrophic insurance also faces problems such as complex local realities in the process of implementation,which cannot automatically achieve the expected results according to the pre-defined scheme.Therefore,under the new starting point of comprehensive wellbeing,it is necessary to assess the actual operation of the major medical insurance system based on the mechanism of its effect on poverty reduction,grasp the effectiveness and fairness of the existing system’s poverty reduction mechanism in a timely manner,analyse the problems that still exist,and provide feasible policy recommendations for optimising the poverty reduction mechanism of major medical insurance,thus providing a strong contribution to the medical insurance system for building a long-term poverty reduction mechanism in China.Based on this,this paper takes the poverty reduction mechanism of major medical insurance for urban and rural residents as the object of study.On the basis of poverty governance theory,health poverty reduction theory and health insurance poverty reduction theory,it firstly discusses the internal mechanism logic of the poverty reduction mechanism of major medical insurance,and proposes the realization path for its poverty reduction function from the theoretical level.Secondly,in the light of the actual operation of GHI,we assess the achievements of the poverty reduction mechanism of GHI in terms of both institutional elements and empirical analysis,explore whether the policy objective of "striving to prevent urban and rural residents from incurring catastrophic medical expenses and effectively avoiding the problem of poverty caused by illness and returning to poverty due to illness" has been achieved,and explore the current problems of GHI in alleviating poverty caused by illness and returning to poverty due to illness.Finally,based on the theoretical and empirical analysis,the findings provide a theoretical basis for optimising the poverty alleviation mechanism of major medical insurance and provide a reference for decision-making,thereby helping urban and rural residents to prevent and resolve the huge medical expenses and improve the overall protection capacity of the medical insurance system.Based on qualitative analysis and quantitative research,this paper finds that the mechanism of catastrophic insurance to reduce poverty is based on the inherent mechanism of guaranteeing equal access to health care resources for all to alleviate entitlement poverty,providing secondary compensation to cover high medical expenses to deal with income poverty,and improving health and working hours to enhance the endogenous motivation to reduce poverty to deal with capability poverty through various system elements.However,in the context of reality,this paper finds that there are still many problems with the system design of the GHI in practice.In order to test whether the poverty reduction mechanism of GHI has had a positive impact,this paper uses panel data from CFPS 2012-2018 to construct absolute and relative poverty measures using households as the unit of analysis,and uses a two-way fixed effects model to empirically analyse that GHI has a significant impact on reducing the occurrence of absolute poverty,but does not effectively alleviate relative poverty.In order to investigate the equity of the poverty reduction mechanism of the catastrophic insurance system,this paper analyses the concentration index of household medical expenditure indicators between the rich and poor groups and finds that there is still a large gap,and the equity of the catastrophic insurance poverty reduction mechanism still needs to be improved.Based on the inner mechanism analysis and the empirical analysis,the paper concludes with the following policy recommendations for optimising the poverty reduction mechanism of the catastrophic illness insurance: firstly,broaden the funding channels to achieve sustainable development of the system;secondly,target the population to implement precise protection;thirdly,explore the shift from fund capping to out-of-pocket capping to improve the level of protection;fourthly,raise the level of coordination to reduce regional differences;and fifthly,promote the orderly integration of multi-level medical protection.The aim is to achieve the important objectives of reducing the burden of medical treatment on the public,enhancing people’s well-being and consolidating the results of poverty eradication.