Can benefit equity alleviate health inequity? --Evidence from the reform of Health Insurance Programs in China

The higher the socioeconomic status, the better the health status. Can the equity reform of health insurance alleviate the health inequality between different groups? Taking the provincial-level coordination reform of Chinese Urban Employee Basic Medical Insurance (UEBMI) as an example, the paper used the China Family Panel Studies (CFPS) data and relevant policy documents to examine the effect of equalized health insurance programs on health inequity by Recentered Influence Function (RIF). The empirical results showed that although the gap in medical reimbursement costs between participants of different socioeconomic status was narrowing after the provincial-level coordination reform, the health inequality among the insured population widened. The equalized health insurance reform can’t alleviate the health inequality brought about by socioeconomic status. This paper suggests that in the progress of promoting the provincial-level coordination reform of UEBMI, the protection of vulnerable groups should be strengthened to promote social equity. JEL codes: I10, I14, I30