Impact of the Integration of Urban and Rural Residents' Basic Medical Insurance on Residents' Consumption: An Empirical Study Based on CFPS Data

This paper uses the balanced panel data of the China Family Panel Studies (CFPS) from 2010 to 2022 and applies the difference-in-differences model (DID) to conduct an empirical exploration of the impact of the integration of urban and rural medical insurance on residents' consumption. The study finds that the medical insurance co-ordination policy has significantly increased the household consumption level of rural residents, but has no significant impact on the consumption of urban residents. The mechanism analysis shows that the medical insurance co-ordination affects high-debt and high-income families more significantly through channels such as reducing the risk of medical expenses and optimizing the household consumption structure. The heterogeneity analysis shows that the policy effect is more prominent in medium-low health, medium health, high-saving families, and remote western regions. The research indicates that the medical insurance integration policy helps to narrow the urban-rural consumption gap, but it is still necessary to further optimize the system design to benefit a wider range of groups.