The Impact Of Commercial Health Insurance On Urban Household Consumption

In 2020,through the concerted efforts of the people of the whole country,China poverty alleviation task has achieved a comprehensive victory,eliminating absolute poverty and regional overall poverty,but this does not mean that families who have escaped poverty will not return due to illness or due to disasters.In order to consolidate the achievements of poverty alleviation,protect the well-being of our people’s livelihood,achieve high-quality economic development,and steadily move towards a high-income society,China formulated the 14 th Five-Year Plan in2021.The outline of the plan emphasizes the expansion of domestic demand as a strategic base point,smoothing the domestic circulation system,and fully activating the consumption potential of China huge population with the help of the increase in residents’ consumption income,comprehensively stimulating domestic demand,and expanding the scale of domestic consumption.Based on the above background and policy orientation,how to stimulate the consumption of our residents so as to better realize economic and social development has become a major issue.As an important category of insurance products,commercial health insurance can effectively disperse the health risks of Chinese residents due to aging and accidents,and reduce the uncertainty of the future.Therefore,it can reduce the preventive savings of Chinese residents to a certain extent and release the consumption potential.In view of the high coverage rate of commercial health insurance in Chinese cities and the larger consumption scale of urban residents,this paper focuses on urban residents and studies the impact of commercial health insurance on urban household consumption.In the process of research,this paper makes full use of the method of combining theory and empirical research.Firstly,it sorts out and summarizes the research literature and related theories of scholars at home and abroad,and expounds the current situation of commercial health insurance and urban household consumption in China.On this basis,combined with China’s national conditions,this paper selects the 2019 family tracking data of China Family Finance Survey Database(CHFS),and determines the total consumption,developmental consumption and hedonic consumption of urban households as the explanatory variables.The explanatory variable is whether to participate in commercial health insurance,and the control variable is the personal statistical characteristics and income of the head of the household.The empirical method adopts OLS ordinary least squares method and propensity score matching method.The results show that commercial health insurance can effectively promote different types of consumption of urban households.In addition,the heterogeneity test is also carried out according to the education level of the head of the household and the marital status.The results show that the consumption of households whose head has a middle education and whose marital status is married is more significantly promoted by commercial health insurance.Finally,the paper makes recommendations based on the empirical results.