The Relationship Between the Basic Medical Insurance and the Commercial Medical Insurance in the Old Age Security in China

Guoyi LAI

Abstract


It is very significant to explore the interacting relationship between the basic medical insurance and commercial medical insurance for improving the medical security system. Based on the analytical framework of expected utility theory, by analyzing the model of insurance demand theory, this article shows following: the interacting relationship between the basic medical insurance and commercial medical insurance is either “Complementary Effect ” or “Crowd-out Effect”. The dominant relationship is decided is depend on the probability of illness in the elderly and the setting rate of basic medical insurance reimbursement. When both medical insurances coexist, if both price and quantity of commercial medical insurance reach the optimum point, the expect utility of the medical security for the aged will maximize.


Keywords


Expected utility; Crowding out effect; Complementary effect

Full Text:

PDF

References


Ehrlich, I., & Becker, G.S.(1972). Market insurance, self-insurance, and self-protection.The Journal of Political Economy, 80(4), 623-648.

Ham, J. C., & Shore-Sheppard, L. (2005). The effect of medicaid expansions for low-income children on medicaid participation and private insurance coverage: Evidence from the SIPP 2003. Journal of Public Economics, 89(1), 57-83.

Herring, B. (2005). The effect of the availability of charity care to the uninsured on the demand for private health insurance. Journal of Health Economics, 24(2), 225-252.

Lo Sasso, A., & Meyer, B.(2006). The health care safety net and crowd—out of private health insurance. NBER Working Paper, No.11977.

Qin, X. Z. (2010).The health care safety net and health insurance: A theoretical and empirical investigation. SEPKU Working Paper E-2010-05-004, Peking University.

Rask, K. N., & Rask, K. J. (2000). Public insurance substituting for private insurance: New evidence regarding public hospitals, uncompensated care funds, and medicaid. Journal of Health Economics, (19), 1-31

Thorpe, K. E., & Florence, C. (1998). Health insurance among children:The role of expanded medicaid coverage.Inquiry, 35(4), 369-379




DOI: http://dx.doi.org/10.3968/10065

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Canadian Social Science

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.


Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; css@cscanada.net; css@cscanada.org

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 CANADIAN SOCIAL SCIENCE Editorial Office 

Website: Http://www.cscanada.net Http://www.cscanada.org 
E-mailcss@cscanada.net, css@cscanada.org

Copyright © Canadian Academy of Oriental and Occidental Culture