The Impacts of Social Security Expenditure on Rural Residents' Medical Consumption in Hubei Province

Hubei University of Chinese Medicine, Management School, 430065 Wuhan, China

^* Corresponding author: yangxi5762@aliyun.com

Abstract

This paper analyzes the effect ofSocial Security Expenditure issued by Hubei Province on health services for the peasantry, and provides the evidences towards the integration process regarding medical insurances of the urban and the countryside.Based on the related economical data collected from countrysides area of Hubei province from 2003-2019, this paper utilizes the outcome of Cointegration and Granger Casual Relation Test to prove the relation from social security and employment fiscal expenditures and rural households’ annual per capita net income.Then the research adds the control variables to perform the examination on robustness. The study shows that the social security expenditure has a significant impact on rural residents' medical consumption.Considering that medical insurance is an important part of social security,we should ensure the steadiness of the further improvement achieved by system of health insurance,increase government financial investment and strengthen the construction of rural basic health and medical facilities.Hubei Province should improve the level of rural medical and health security, strengthen management, improve efficiency and improve mechanisms, and deepen the reform of the medical and health system.Therefore, the economical burden of rural residents brought by seeking medical treatment will be reduced in order to narrow the difference between the urban and the countryside which will further promote the equality in medical system.