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Effect of retirement on medical reimbursement expenses-evidence from China
Yuanyang Wu1, Jiahui Pang2, Hualei Yang3
1School of Medicine and Health Management, Tongji Medical College, Huazhong University of Science and Technology, Wuhan, 430030, Hubei, China.
Insights
Retirement significantly increases outpatient medical reimbursement expenses in urban China due to lower time costs and poorer health. This impacts older adults with higher education or those widowed/divorced.
Area of Science:
- Health Economics
- Gerontology
- Public Policy
Background:
- China's medical reimbursement system has expanding but incomplete coverage.
- Existing policies do not fully align reimbursement with healthcare demand.
- The impact of retirement on healthcare expenses in China is under-researched.
Purpose of the Study:
- To investigate the effect of retirement on medical reimbursement expenses in urban China.
- To explore heterogeneity in this effect based on education and marital status.
- To identify potential mechanisms driving the observed association.
Main Methods:
- Utilized fuzzy regression discontinuity design.
- Employed data from the China Health and Retirement Longitudinal Study (CHARLS) from 2011-2018.
- Analyzed group heterogeneity and underlying mechanisms.
Main Results:
- Retirement was associated with a significant increase in outpatient medical reimbursement expenses.
- Lower time costs and declining health post-retirement were identified as potential mechanisms.
- The increase in expenses was more pronounced among individuals with higher educational attainment or who were widowed/divorced.
Conclusions:
- A positive association exists between retirement and increased medical reimbursement expenses.
- Retirement policies should consider medical reimbursement to enhance healthcare access for retirees.
- Integrating reimbursement considerations into policy can promote rational healthcare utilization among the elderly.
Background:
Medical reimbursement in China is not for all diseases, and medical reimbursement expenses are not completely consistent with medical service demand, though the scope and proportion of medical reimbursement are gradually expanding. This study aimed to examine the effect of retirement on medical reimbursement expenses in urban China.
Methods:
The effect of retirement on medical reimbursement expenses were estimated by using fuzzy regression discontinuity based on data from the China Health and Retirement Longitudinal Study (CHARLS) in 2011, 2013, 2015, and 2018. Its group heterogeneity by educational backgrounds and marital status, and underlying mechanisms were also explored.
Results:
Retirement increased medical reimbursement expenses of outpatient significantly (P < 0.05).Low time cost and deteriorating health status after retirement were possible mechanisms in this association. Retirement increased the reimbursement expenses significantly among the older adults with more educational obtainment or being widowed/divorced.
Conclusion:
The above findings indicated that there was a positive association between retirement and medical reimbursement expenses. The scope and proportion of medical reimbursement should be incorporated into retirement policy for improving medical service accessibility and rational healthcare utilization of retired population.
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