Study Of The Impact Of Urban Basic Medical Insurance On Health And Consumption Transmission Mechanism

As an important component of the social security system in China, the Urban Basic Medical Insurance system is beneficial to the development of our economy and society, and it does good to people’s health right so as to improve the human capital. In the late 19th century Germany established the medical insurance policy in the form of national legislation. And according to some statistics, into this century, more than 170 countries around the world has established the basic medical insurance system. And the medical insurance is an important academic topic ever since then.With the rising of living standard, people is paying much more attention to health and health care. In Urban areas, China introduced the labor medical insurance system in 1998, and in 2007 introduced basic medical insurance for urban residents. Thanks to the system, more and more people get covered. However, the influence of the system does on people’s health is not consistent, despite the fact that most scholars have positive opinions. Therefore, whether it can improve people’s health level or not is an important aspect to evaluate medical health care system.This paper tries to research the Impact of Urban Basic Medical Insurance on health:From a Perspective of Consumption. Although there are many literatures about the Impact of medical insurance on health, there are few research focus on the perspective of consumption. Using penal data of 31 provinces and regions from 2002 to 2013, as well as using related Econometric models, this paper finds that after controlling variables like disposable income, consumption works as a way to influence Impact of UBMI on health, and precautionary saving can explain this mechanism. It also shows that medical consumption and food consumption do better on health in this mechanism. In order to improve health level, enforce the social medical insurance and improve consumption structure are recommended.