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WILLINGNESS TO PAY IN CHINA'S NEW COOPERATIVE MEDICAL SYSTEM

Authors

  • PHILIP H. BROWN,

    1. Brown: Assistant Professor of Economics, Department of Economics, Colby College, Waterville, ME 04901. Phone 1-207-859-5246, Fax 207-859-4425, E-mail phbrown@colby.edu
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  • THOMAS HUFF

    1. Huff: Research Analyst, Data Research and Analysis, Associates for International Research, Inc., Cambridge, MA 02138. Phone 1-617-354-2133, Fax 617-547-1535, E-mail thuff@air-inc.com
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    • We gratefully acknowledge the Ford Foundation Beijing Program Office for financially supporting the data collection efforts. Additional support was provided by the Colby College Division of Social Sciences (grant numbers 01.2290 and 01.2208) and by the Chinese Academy of Social Science. We are extremely grateful to Alan de Brauw, Yang Du, and Funing Zhong for their collaboration on this project and to participants at the 2008 Chinese Economists Society annual conference in Tianjin for their helpful comments.


Abstract

Household survey data from China is used to analyze the determinants of households' willingness to pay to participate in the New Cooperative Medical System (NCMS). Wealthier households, households with at least one member who has been treated as an inpatient, and households in counties where NCMS is already established are willing to pay more for the program. Households who carry other forms of insurance, however, have a lower willingness to pay for the NCMS. We also find that the participation fee could be increased substantially to increase the size of the risk pool while scarcely affecting participation rates. (JEL I1, O1, D1)

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