Study On The Influence Of Commercial Health Insurance On Residents’ Consumption In China

The growth in demand for healthcare and the ageing of population is causing healthcare expenditure in China to increase at an alarming rate,people are under a lot of pressure to pay more on medical care against this background of expenditure.This is where commercial health insurance can play a unique role in providing protection.Commercial health insurance can reduce preventive savings and stimulate spending by reducing the unpredictability of the medical risks people will face in the future.The increasing emphasis on commercial health insurance by government and insurance companies in recent years has not only reduced the incentive to save preventively,but has also been critical to the establishment of a comprehensive and diverse insurance security.The existence of commercial health insurance can alleviate the high saving behavior of Chinese residents,allowing them to unleash their consumption potential.In this sense,there is a great need to study the effect of commercial health insurance on consumer spending in China.This paper adopts the literature analysis method,which mainly integrates and summarizes the research done by some domestic and foreign scholars on commercial health insurance and residents’ consumption expenditure in recent years,mainly from three perspectives: research on the influence of commercial health insurance,research on factors affecting public expenditure,and research on the influence of commercial health insurance on consumer spending.After clarifying the main views of scholars at home and abroad,this paper reviews and organizes relevant data to describe the state of commercial health insurance and Chinese expenditure;in terms of theoretical analysis,this paper proposes assumptions according to consumption-related theories and impact mechanisms;in specific research,this paper adopts the empirical analysis method,citing the current Southwest University of Finance and Economics China Household Financial Survey can be applied to the latest CHFS(2019)database,and on the basis of data perfection,the variables are selected,models are constructed,and the relationship between the two is studied through the OLS method,and then instrumental variables are added for 2SLS estimation to specifically analyze the effect of commercial health insurance on public expenditure in China.A comparative analysis method is used to develop a study of the effect of commercial health insurance on different consumption and residence types,and to explore the effect of commercial health insurance on basic and non-basic consumption of life and urban and rural households.Based on the empirical results,it is concluded that commercial health insurance in China can have a positive effect on residents’ consumption expenditure,and its effect on different consumption and household types varies.On this basis,this paper combines the empirical results to propose measures to enhance the growth of commercial health insurance at the government and enterprise levels,respectively,in order to drive residents’ consumption and significantly increase consumption levels.