Publication
Title
Critical illness insurance to alleviate catastrophic health expenditures : new evidence from China
Author
Abstract
Currently, a high percentage of Chinas households face financial catastrophe as a direct result of excessive out-of-pocket (OOP) health expenditures. To alleviate this, China has set up the Critical Illness Insurance (CII) program since 2012. However, the current CII is still in an experimental phase and tested in 8 (out of 34) provinces, which has not been proved to be effective. This paper develops a health financing system for reducing catastrophic medical spending using a two-layer model for CII. This model partly compensates expenses exceeding the cap line of the Social Resident Basic Medical Insurance scheme to maintain the ratio of OOP expenses to total medical expenditure approximately at 20%. Adjustment coefficients based on individual net income across different regions are applied to increase fairness. The financial sustainability of the model is tested using a fund balance calculation. Finally, the two-layer model of the CII is empirically simulated with the latest provincial data from China Family Panel Studies. The results demonstrate that the model can effectively alleviate the incidence and severity of catastrophic health expenditures.
Language
English
Source (journal)
International journal of health economics and management. - [New York], 2015, currens
Publication
[New York] : Springer , 2019
ISSN
2199-9023 [print]
2199-9031 [online]
Volume/pages
19 :2 (2019) , p. 193-212
ISI
000469224000003
Pubmed ID
30242583
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 05.10.2018
Last edited 11.09.2021
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