The Influence Of The New Rural Cooperative Medical System On Rural Household Consumption

In recent years,China’s household savings rate has remained high.The collapse of the traditional social security system has caused the increase of residents’ awareness of preventive savings,which lead to the phenomenon of high savings and low consumption.In 2002,China established a new rural cooperative medical insurance system.The implementation of this system provides basic medical security for rural residents,which alleviated the poverty-stricken and disease-returning phenomenon in rural areas.However,from the individual level,Whether the new rural cooperative medical system does really reduce the medical expenses and improve the consumption and living standards of residents,which is a problem that needs to be verified.Therefore,this paper focuses on the economic issue of "the impact of new rural cooperative medical insurance on rural household consumption".This paper uses the combination of theory and empirical methods to study the impact of new rural cooperative medical insurance on rural household consumption.The article reviews the research literature and research results at home and abroad,and analyzes the new rural cooperative medical policy based on the theory of preventive savings and Grossman’s health demand theory.The new rural cooperative medical system has a certain impact on rural household medical consumption and non-medical consumption.It provides a theoretical basis for the empirical research of the article.Based on the previous theoretical analysis,this paper proposes three hypotheses and it uses the CFPS panel data of 2010,2012,2014,and 2016 to establish a fixed-effect model for empirical research,and participate in the new rural cooperative family.By comparing participated in the new rural cooperative medical insurance family and did not participate family and combing with theoretical analysis and empirical analysis,the following conclusions were drawn: First of all,the per capita total consumption of rural households participating in the NCMS households has increased by 10.2%,of which the food and daily expenses of participating families were 15.3% higher than those of non-participating households,and the health care expenditure of participating families was 40.6% more than that of non-participating households.The new rural cooperative medical system has no significant impact on the per capita cultural and educational entertainment expenses of the family.Secondly,the new rural cooperative medical system has a significant impact on the per capita total consumption of rural households in the eastern and western regions,as well as per capita food and daily consumption,and it has no significant impact on the central region.The new rural cooperative medical system has a very high per capita health care consumption for rural households in the eastern,central and western regions.Thirdly,the impact of NCMS on rural household consumption is mainly reflected in middle-and low-income families,and it has no significant impact on high-income groups.Based on the research conclusions of this paper and the problems existing in the new rural cooperative medical system,the following suggestions are proposed: Firstly,we should to increase the reimbursement rate of the new rural cooperatives in a timely manner,expand the scope of reimbursement,and reduce the threshold for the prevention of major illnesses.Secondly,we need to establish and improve the new rural cooperative medical system,and solve the problem of difficult medical treatment and expense reimbursement.Thirdly it is necessary to optimize the rules for outpatient and hospitalization compensation for new rural cooperative residents and improve the construction of medical service facilities to provide necessary conditions for the full use of new agricultural cooperation.At last we should strengthen the legal system,improve the supervision and management mechanism,and truly win the trust of the people.