A Study On The Influence Of Government Medical Expenditure On Individual Medical Expenditure

In 2009,the new medical reform proposed to effectively reduce the individual medical burden to achieve the goal of mitigating the problem of "expensive medical services" for residents.Since the implementation of the new medical reform,the government has kept increasing attention on health care,and the government medical expenditure has continued to increase.However,according to statistics in recent years,the increase in government medical expenditure has not brought about a reduction in residents’ medical burden,and the phenomenon of “expensive medical services” is still common among residents,indicating an obvious "flypaper effect" on government medical expenditures.Therefore,this paper uses China Family Panel Studies(CFPS)data and provincial data to form new panel data,and applies the Fixed Effects Model to explore the impact of government medical expenditure on individual medical expenditure.The result shows that the government medical expenditure has a significant “Crowding-in-Effect” on individual medical expenditure,which has apparent group differences: the effect in rural areas is greater than that in urban,and among middle-income families is greater than that among high-income families and low-income families.China’s medical insurance has the characteristic of "pro-rich".In order to optimise the individual medical expenditure,the government should adjust the direction of government medical expenditures,turning from the "supply side" to the "demand side";government medical input should pay more attention to the construction of primary medical and health care system and narrow the gap between urban and rural areas,and inclined to the low-income groups and the elderly groups.