Participating in health insurance and health improvements for the relatively poor population: A propensity score analysis

Abstract

This study examined the causal relationship between participation in the New Rural Cooperative Medical Scheme (NRCMS) and health status among relatively poor population in rural China. Data were obtained from the China Family Panel Studies (CFPS) conducted in 2018, which contained 4,507 samples. This study used propensity score matching (PSM) to examine the net effect of participation in the NRCMS on the health of the relatively poor population, and this effect was tested for equilibrium using nearest neighbor matching, radius matching, and kernel matching. This study showed that participation in the NRCMS has a significant and positive effect on the health status of the relatively poor population and the positive health effect may come from three channels, including the increased frequency of physical activity, the fact that an individual is more likely to seek medical care at a lower level of visit, and a plan to reduce health care expenditures.