Regression Analysis of Health Insurance Cost Affecting Factors

Abstract

The paper selected the relevant data of 1999-2009 basic medical insurance for urban residents in China as object. By setting the relevant indicators, build multiple linear regression models and analysis the factors which affect the health care costs of China from two perspectives, that is, both sides of supply and demand. To put forward strategies and suggestions for controlling the health insurance costs in China. Keywords: Health care costs； Influencing factors； Both sides of supply and demand；Multiple regression Since in 1970s, the rapid growth of health care costs and how to control the rapid growth of medical cost has become one of the most important economic and social problems of modern society. [1] In recent decades, cost control has been a enormous challenge of medical insurance system , medical insurance cost overruns is a common problems of the vast majority city, is also one of the biggest potential crises of the medical insurance system. [2] 1 Objects and Methods 1.1 Object "2010 China Health Statistics Yearbook" and "2010 China Statistical Yearbook" are selected as the object of study. Six kinds of factors which can affect the cost of health insurance are selected from both the supply-side and demand-side. The factors are per capita disposable income of urban residents, the price level, hospital costs, the number of hospitals, per capita income of hospitals, financial investment. 1.2 Research Methods Use the methods of literature research and logical reasoning, to qualitatively analysis the related factors which impact China's medical insurance costs. Use the methods of multiple linear regressions to build a model, to quantitatively analysis the related factors which impact China's medical insurance costs. 1.3 Data Analysis First, analysis the Pearson correlation coefficient of the selected data by the statistical software SPSS 17.0, to research the interrelationship and closeness between the various factors and total medical insurance costs. Then, Import the data of the relevant factors into the multiple linear regression models. 2. Qualitative Analysis of Cost Factors To control the medical insurance cost involves many factors. Therefore, choosing the right breakthrough is very important. Currently, the strategy of control medical insurance costs goes through three parties: demand-side, supply-side, insurance agencies. 2.1 The Controlling Factors of the Demand-side Modern medical insurance are usually constituted of three parties: medical service providers, patients, insurance agencies. And in this tripartite relationship, the first thing is to control the use of medical insurance of the demand-side. In China, because of the cost been paid by a third party, it makes that the insured person has the motives of excessive consumption, the main problem is: excessive use of high-end medical resources; misrepresent the condition, minor illness care, one person insured and more personal benefit. Currently, the study of consumer controlling of demand-side is the world's most famous health insurance experiment which conducted in the United States in 1974. The experimental results show that: in the case of free medical care, the insured person's spending and health service utilization are the highest. After setting a certain cost-sharing measures, medical costs are significantly reduced, that is, raising the co-payment rate can reduce consumers' medical needs, thereby reducing the cost of health insurance payments. Therefore, on the demand-side, the most important thing of controlling health care costs is to control the insured person's spending power. 2.2 The Controlling Factors of the Supply-side Extensive literature and the practice of many countries proved that the insured person burden part of the cost does not fundamentally eradicate controlling medical costs continue to grow. Many countries have to shifted focus from the demand-side to supply-side to control health care costs. By changing the consciousness of health care providers to control and reduce the cost, to achieve the purpose of reducing health care costs. And on the supply-side, the greatest impact of controlling cost is that the health care providers use its information advantage to induce patient consumer behavior. Medical induced demand is proposed by Evans, there are two meanings: First, if the medical services provide by the doctor does not meet the patient's best interests, we think that there is some degree of induced demand, Second, if the patient demand for medical