Research on the Effect of Commercial Health Insurance Development on Economic Efficiency

Abstract

In the process of comprehensively promoting the construction of a multi-level medical security system in China, it is very important to clarify the impact of commercial health insurance. In order to better promote the development of commercial health insurance, we explore the effect of commercial health insurance development on economic efficiency. Theoretical analysis shows that, in addition to providing health risk protection for residents, commercial health insurance can also promote the coordinated development of the health industry chain, promote risk reduction, accumulate capital, and contribute to high-quality economic development. Empirically, this study indexes a commercial health insurance development index that is more in line with China’s development reality. In addition, this study compiles the economic efficiency index from the three dimensions of economic development basis, social benefits and industrial changes. We measure the commercial health insurance development index and economic efficiency index in 31 regions from 2007 to 2019, and further econometric analysis is carried out on this basis. It is found that the development of commercial health insurance can promote economic efficiency, and this result is robust. Meanwhile, the impact of commercial health insurance on economic efficiency is restricted by the economic environment itself, and the more developed the economy is, the more obvious this effect will be. Therefore, the development of commercial health insurance will significantly benefit the construction of China’s multi-level medical security system and promote regional economic efficiency.

The relationship between health insurance and economic performance: an empirical study based on meta-analysis

“…Commercial health insurance, characterized by “high funding and high payouts,” plays a crucial role in promoting consumer upgrading. For instance, the study of Zhao et al indicates that commercial health insurance contributes to the construction of a multi-level healthcare system and enhances economic performance ( 8 ). Lei and Lin found that public health insurance did not reduce patients' out-of-pocket expenses ( 22 ).…”

“…Furthermore, it directly stimulates economic performance by increasing individual income through higher labor productivity, marginal productivity, working hours, and the duration of production activities ( 12 – 14 ). Researchers have found that health insurance significantly reduces medical expenditure risks, lowering poverty and boosting income, preventing health-related poverty for low-income groups, and enhancing residents' consumption capacity ( 8 , 15 – 18 ). However, not all studies support the view that healthcare positively influences economic performance.…”

“…While scholars have explored the impact of health insurance on economic performance from various perspectives, there is no consensus on the relationship between the two. In varied research contexts and datasets, studies have shown that the relationship between the two may be positive, negative, or uncorrelated (2,(8)(9)(10). A consensus is emerging, however, that investing in health insurance is a strategy for cultivating human capital.…”