Inequality in Financing China’s Health Care
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Based on large household surveys for 2002, the relation between income and subsidies respectively out-of-pocket expenditures for health care in China is analysed. The analysis pays particular attention to spatial dimensions. A major finding is that the concentration coefficient for subsidies is as high as 72 percent, much higher than the Gini coefficient of 45 percent. Thus subsidies are dissproportionaly benefiting those better off. The concentration coefficient for the household's out-off pocket payments is much lower, 37 percent. These results indicate a fundamental difference with the situation in OECD countries where public sources tend to have small redistributive effects while private financing sources generally have larger negative redistributive effects. The much better off urban residents are more or less the sole gainers of subsidies, while the rural majority are excluded. Among urban household members those living in the eastern region gain on average more from subsidies than those living in other regions. The results can be used as arguments for changes in the profile of subsidies to the health care sector: If rural China, particularly the western region would receive a larger proportion of the subsidies and urban China, particularly the eastern region, would receive a smaller proportion China's reputation regarding lack of fairness in funding the health sector would improve.
CHAP
Inequality and Public Policy in China
Zhong, Wei
Gustafsson, Bjorn A.
Gustafsson, Bjorn A.
Shi, Li
Sicular, Terry
2010
207
9780521159050
1439