Influencing Factors of Health Care Expenditure for Rural Residents in China after Enforcing New Rural Cooperative Medical System

Abstract

Based on the time series from 2004 to 2010, applying gray correlation analysis theory, this paper analyzes the influencing factors of health care expenditure of Chinese people in rural area after implementing the new Rural Cooperative Medical System. The result showed that, after enforcing new Rural Cooperative Medical System, the increase of rural residents’ health care expenditure in china was still mainly driven by the improvement of farmers’ income. The new Rural Cooperative Medical System has appeared effective, but compensatory mechanisms have yet to be perfect. And during this period of time, the increasing number of rural doctors and the price fluctuations of medical care have little effect on farmers' health spending.