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Evidence shows that being enrolled in health insurance can improve an individual's subjective well-being (SWB). Studies have shown, for example, that randomized Medicare expansion in Oregon resulted in a self-reported gain in happiness of 32 percent after about a year. Yet there is not much documentation of this link in low- and middle-income countries.

The authors of this study analyze individual-level data on China's integration of its rural and urban resident health insurance programs. This reform, expanded nationally since 2016, is recognized as a vital step towards attaining the goal of providing affordable and equitable basic healthcare in China, because integration raises the level of healthcare coverage for rural residents to that enjoyed by their urban counterparts. The study is the first of its kind, providing national-level evidence of the impact of China's urban-rural insurance integration on its population. 

Analysing 2011–18 data from the China Health and Retirement Longitudinal Study in a difference-in-difference framework with variation in the treatment timing, the co-authors find that the integration policy significantly improved the life satisfaction of rural residents, especially among low-income and elderly individuals. The positive impact of the integration on SWB appears to stem from the improvement of rural residents’ mental health (decrease in depressive symptoms) and associated increases in some health behaviors, as well as a mild increase in outpatient care utilization and financial risk protection. The positive impact of the integration on life satisfaction among rural residents persists and gradually increases within at least four years. This improvement is significant given the challenge of growing mental disorders brought on by China's accelerated urbanization. There was no discernible impact of the integration on SWB among urban residents, suggesting that the reform reduced inequality in healthcare access and health outcomes for poorer rural residents without negative spillovers on their urban counterparts.

Key messages

  • The co-authors analyze insurance coverage and subjective well-being (SWB) based on a large natural experiment in China: the integration of the rural and urban resident health insurance programs.
  • This study is the first to investigate the impact of urban-rural health insurance integration on the SWB of the Chinese population.
  • The integration policy significantly improved the life satisfaction of rural residents, especially among low-income and elderly individuals.
  • The positive impact of the integration on SWB appears to stem from the improvement of rural residents’ mental health and associated increases in some health behaviors, as well as a mild increase in outpatient care utilization and financial risk protection.
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Evidence From Integrating Medical Insurance Across Urban and Rural Areas in China

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Health Policy and Planning
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Qin Zhou
Karen Eggleston
Gordon G. Liu
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Visiting Scholar at APARC, 2024
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Ph.D.

Huixia Wang joined the Walter H. Shorenstein Asia-Pacific Research Center (APARC) as a visiting scholar for the 2024 calendar year. She is currently Associate Professor of Economics at Hunan University. While at APARC, she conducted research examining the effects of air pollution on healthcare expenditure and children's health in China.

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George Krompacky
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On October 18, as part of its autumn 2023 seminar series on APEC in advance of the organization's meeting in San Francisco in November, Shorenstein APARC and its Asia Health Policy Program (AHPP) presented the series' second event, Asia-Pacific Digital Health Innovation: Technology, Trust, and the Role of APEC. The featured panelists were Kiran Gopal Vaska, Director of the National Health Authority of India, and CK Cheruvettolil, the Senior Strategy Officer, Digital Health and Artificial Intelligence, at the Bill & Melinda Gates Foundation. Siyan Yi, the Director of the Integrated Research Program at the National University of Singapore and a former AHPP fellow, moderated the conversation.

While India is not an APEC member, Indian initiatives are examples of leveraging technology to better the health of the most vulnerable citizens in low- and middle-income countries (LMICs). Kiran Gopal Vaska gave an overview of the Ayushman Bharat Digital Mission (ABDM), India's latest health initiative that focuses on the interoperability of health records, services, and health claims. He stressed that ABDM was built on previous digital infrastructure, like Aadhaar, the national digital identity system, and Digilocker, a digital storage scheme for citizens' health and other records.

In ABDM, we do just three things: interoperability of health records, interoperability of services, and interoperability of health claims.
Kiran Gopal Vaska
Director of the National Health Authority of India

The approach India has taken is for the government to build the rails—the infrastructure of the system—and create a space where the private sector can develop applications integrated with that space through application programming interfaces (APIs), avoiding the siloing that can hamper the interoperability of data.

Regarding health data, privacy is a crucial concern at the patient level. ABDM addresses this concern through the use of a consent artifact. Individuals decide whether hospitals or other medical service providers have access to their data, and this access has levels of granularity: you can share specific portions of 7 different data types, like immunizations or prescriptions. You can limit that sharing to a particular period, like one day.

Also participating on the panel was CK Cheruvettolil, who discussed strategies by the Bill & Melinda Gates Foundation in leveraging the power of mobile phones to augment the work of Accredited Social Health Activists (ASHAs), the more than one million female frontline health workers in India. ASHAs can use mobile phone cameras, sensors, and streaming data to better care for low-birth-weight babies and other patients. 

If [software] is developed in isolation without understanding that social context, you would lose a huge portion of the population, you'd lose that effectiveness.
CK Cheruvettolil
Senior Strategy Officer, Digital Health and Artificial Intelligence, Bill & Melinda Gates Foundation

He explained the critical role of taking local context into account when developing software by using the example of pregnant Indian women in their third trimesters. The custom for Indian mothers, especially in rural areas, is for the child to be born in the maternal grandparents' home. If software were to store only the mother's address, healthcare workers in the grandparents' jurisdiction would not know that a pregnant woman in the critical third trimester would soon be giving birth at a local address.

Kiran Gopal Vaska noted that India had solved the technological issues, and now the task was to push for adoption. He emphasized that the technologies underlying India's digital health stack were created as public goods for the world, and for LMICs to support each other in advancing digital health technologies, the key was interoperability, "using standards that are accessible and acceptable worldwide."

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The Future of Health Policy: Reflections and Contributions from the Field
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Health Policy Scholars and Practitioners Examine the Future of the Field

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Shorenstein APARC continued its APEC seminar series with the second installment, Asia-Pacific Digital Health Innovation: Technology, Trust, and the Role of APEC, a panel discussion that focused on how India’s digital health strategy has evolved and its lessons for other countries creating their own.

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George Krompacky
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This story was updated on September 18, 2023, to reflect the passing of Victor Fuchs.


It is hardly news that America’s health care system is complicated, expensive, and, in many ways, dysfunctional and that the nation’s health care outcomes are falling behind those of other, even sometimes poorer, countries. The problems of rising costs and disparities in access and outcomes were already well established in 1974, when Victor Fuchs, the late Henry J. Kaiser, Jr., Professor of Economics and of Health Research and Policy at Stanford, first published his seminal book Who Shall Live? Health, Economics and Social Choice. In what turned out to be the first edition of the book, Fuchs applied fundamental concepts from economic theory to health and medical care in an innovative manner that hadn't been attempted previously, presenting an economic framework for addressing health and medical care challenges and emphasizing the importance of choice at both individual and societal levels. The publication became a classic introduction to health economics and is recognized for pioneering the field.

Now a third edition of Who Shall Live? has been released by World Scientific Publishing, co-authored by Karen Eggleston, director of Shorenstein APARC’s Asia Health Policy Program. This edition adds supplemental research and an all-new section that focuses on the decade 2012–21, specifically looking at the Affordable Care Act, the COVID-19 pandemic, the intersection of health and politics, and the state of expenditures and outcomes during that period.

Eggleston was honored to be able to work with Fuchs, who had also been a senior fellow emeritus at the Freeman Spogli Institute for International Studies and the Stanford Institute for Economic Policy Research, but noted that “it was a little depressing to hear him conclude that the pandemic would not be the 'wake-up call’ for systemic reforms that he has spent a lifetime showing the United States needs.” Fuchs passed away peacefully in his longtime home on Stanford’s campus on September 16, 2023. He was 99.

Between 2012 and 2019 (pre-pandemic), life expectancy at birth did not increase at all in the United States, while it increased 0.18 years per annum in Japan, and 0.16 years per annum across 10 other high-spending OECD countries.
Karen Eggleston

Part of the story of U.S. health care is its poor showing compared to other, often less-affluent nations. Japan is one of the comparison countries in the updated section on the last decade; in one example, Eggleston describes, “between 2012 and 2019 (pre-pandemic), life expectancy at birth did not increase at all in the United States, while it increased 0.18 years per annum in Japan, and 0.16 years per annum across 10 other high-spending OECD countries.” This is despite the fact that “in 2019, Japan spent only 63% of what the United States spends on healthcare (as a share of GDP)… Why can’t we do better for Americans?” 

This question is precisely the one that Who Shall Live? aims to answer—that the state of any health care system is a result of “the necessity of choice at both the individual and social levels.” To shrink the costs of health care in the United States and improve outcomes, different choices have to be made—by patients (in their personal lifestyles and behavior), by physicians, by hospitals, and by the U.S. government.

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Asia Health Policy Postdoctoral Fellow, Jianan Yang
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Asia Health Policy Program Director Karen Eggleston has coauthored the new third edition of Victor Fuch's 'Who Shall Live: Health, Economics, and Social Choice,' an authoritative book considering the great health challenges of our time.

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Asia Health Policy Postdoctoral Fellow, 2022-23
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Ph.D.

Jianan Yang joined the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) as the 2022-2023 Developing Asia Health Policy Postdoctoral Fellow. She recently obtained her Ph.D. in Economics at the University of California San Diego. She holds B.A. in Economics and Mathematics from the Renmin University of China. Her research lies in the intersection of development and health economics and revolves around what drives the sub-optimal healthcare-seeking behaviors in developing countries and how they can be improved by leveraging price or non-price mechanisms.

Yang views health as a fundamental part of human development. People in developing countries usually face additional barriers to accessing healthcare resources because of underqualified providers on the one side, lower income levels, insufficient insurance coverages, and a lack of information on the other side. Because markets in healthcare settings are usually characterized by imperfect competition and government regulations, Yang thinks it is important to evaluate the policies’ impacts on various aspects of the healthcare system. Through understanding the underlying constraints, we can think about how the policy can be designed more efficiently.

Yang’s dissertation studied how patients’ chronic condition drug utilization responds to price reductions in China. By documenting a larger increase in utilization and a meaningful reduction in underuse among the uninsured, the study suggests that the price elasticities would be higher in developing countries and there will be larger welfare benefits from such price reductions resulting from squeezing out the price markups of the pharmaceutical companies due to market power. The finding suggests that cost is a barrier to both drug take-up and adherence, especially among the lower-income population who meanwhile are more likely to not have insurance coverage.

At APARC, Yang further accessed the underlying factors affecting people’s healthcare-seeking behaviors including the role of cost, information, and behavioral bias. She also extended her research agenda to the other sectors of the healthcare system. 

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Noa Ronkin
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More than a year after Myanmar’s military junta seized power in a coup, the military’s concerted offensive operations have failed to crush anti-regime resistance forces and consolidate power in rural areas. The violent deadlock between the military government and multiple opposition groups shows no signs of easing, and the people of Myanmar remain trapped in an escalating political, economic, and humanitarian crisis.

According to the latest report from the United Nations Office for the Coordination of Humanitarian Affairs, the number of internally displaced people (IDPs) in the country has exceeded one million, basic services have collapsed, and more than 14 million people have humanitarian needs.

APARC’s Southeast Asia Program and Asia Health Policy Program bring attention to the political context of the civil conflict in Myanmar and the implications of the multidimensional crisis in the country. This past spring quarter, the Southeast Asia Program dedicated one of its webinars to examining the opportunities and challenges faced by the opponents of Myanmar’s military regime. The virtual discussion featured two experts: Nyantha Maw Lin, an analyst with extensive experience in government affairs, public policy, and political risk assessment related to Myanmar, and Scot Marciel, a career diplomat and former U.S. Ambassador to Myanmar who now serves as a visiting practitioner fellow on Southeast Asia at APARC.

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A Shifting Civil Conflict

Nyantha described the evolution of the anti-coup movement in Myanmar from its beginnings with protests and civil disobedience campaigns by government workers and civil servants to its current state of armed resistance movement aimed at bringing down the military regime. Ethnic Armed Organizations (EAOs) have played a pivotal role in this shift. These non-state actors have fought the Myanmar military for decades in the borderlands and hold parts of the country under de facto control, sheltering and training tens of thousands of young people.

These resistance groups now present a powerful front of grassroots-level insurgency that is hampering operations by the coup regime. In this collection of self-organized groups, some are working with the National Unity Government (NUG) shadow administration, others with more decentralized networks, but all share the conviction that armed struggle is the only option for dealing with the military regime.

The power dynamic between the military and anti-regime resistance forces is now existential for both sides. “We are looking at what will most likely be a protracted civil conflict in Myanmar,” says Nyantha.

What are the paths toward a better future for Myanmar? One possibility is a shift in the military’s calculus, though it would necessitate a leadership change. Another possibility, according to Nyantha, is that the array of opposition actors can come together and use multilateral platforms to facilitate unprecedented forms of cooperation beyond resistance against the military to establish areas of territorial control and self-governance. “If they can emerge from this process with a new political vision and a roadmap for a more tolerant and inclusive Myanmar, then there is a chance the balance may tip against the military.”

These platforms include the National Unity Consultative Council (NUCC), which includes representatives from multiple opposition groups. Depending on how dialogues within the NUCC continue, it could generate a new political dynamic in the country and lay the groundwork for a future federal democratic union, notes Nyantha.

 

As long as the military is in power, Myanmar is not going to enjoy peace or stability.
Ambassador Scot Marciel

Historical Grievances, Future Visions

But there remains a lot of work to do to build trust among Myanmar’s traditionally fractious ethnic groups, Ambassador Marciel stresses. This mistrust has historical roots in decades of political disunity among Myanmar’s ethnic minorities amidst struggles for autonomy and self-determination, and in their longstanding grievances toward the state that has privileged the majority Burmans (also known as Bamar). Thus, possibly the biggest weakness of the resistance movement is the lack of a unified vision for establishing civilian rule. “I do think that it is hugely important to bring about more unity to the movement that is resisting the military regime,” says Marciel.

The international community should better understand the complexity of the civil conflict in Myanmar and recognize that the spontaneous revolt underway is not only a resistance front against the military but also a movement demanding dramatic social and political change, Marciel emphasizes.

He, therefore, cautions that the traditional tools of conventional diplomatic thinking – ceasefire, peaceful negotiations, and dialogue — do not currently apply to Myanmar. “At this point, there is no realistic scenario of dialogue leading to some compromise deal. As long as the military is in power, Myanmar is not going to enjoy peace or stability.” The people of Myanmar have suffered for far too long at the hands of the military, and the resistance forces are not interested in a compromise deal that would allow the military to maintain substantial political power, Marciel says. At the same time, the military is also not interested in negotiating.

According to Marciel, the international community should focus on supporting the resistance movement efforts. He also expressed this point in a recent interview with The Irrawaddy. “[T]he best possible scenario is for the military to face so much pressure that they then begin to look for a way out […] I think that maximum pressure on the military, both internally and externally, whether it’s by sanctions or other means, is the best chance of achieving progress, though it won’t be easy.”

To fight a pandemic, collective action is needed. Instead, Myanmar has faced a collective trauma.
Dr. Phyu Phyu Thin Zaw

A Deadly Syndemic

Even before the coup, Myanmar had one of the world’s weakest health systems and one of the least prepared for addressing epidemics and pandemics, according to the 2019 Global Heath Security Index. The devastating effects of the coup have coincided with the COVID-19 pandemic, combining into a perfect storm that has brought the country’s already-fragile health system to collapse.

The coup and the post-coup conflicts interact with the pandemic and Myanmar’s fragmented health system in ways that resemble a syndemic, says Phyu Phyu Thin Zaw, a medical doctor, epidemiologist, and health systems researcher now based at the University of Hong Kong’s School of Public Health. The term syndemic refers to the synergistic nature of health and social problems affecting vulnerable communities and contributing to an excess disease burden. It helps explain the dire crises gripping Myanmar’s health system, explains Dr. Thin Zaw.

Thin Zaw, a former visiting scholar at APARC, spoke at a webinar hosted by the Asia Health Policy Program about the impacts of the devastation caused by the coup and the COVID-19 pandemic on Myanmar’s health system and the current opportunities and challenges for response and recovery. She was joined by Nay-Lin Tun, a medical doctor who manages programs that help vulnerable communities in remote and conflict-affected areas of Myanmar to get access to health services.

Since the coup, hundreds of medical personnel and health care workers have been dismissed and subject to violent attacks. Many have escaped to areas under the control of anti-junta forces, leading to a severe “brain drain” or rather “brain hemorrhage” in the health system, Thin Zaw notes. When the third wave of the coronavirus struck Myanmar in July 2021, it hit like a tsunami. Immunization plans were severely interrupted, no quarantine or contact tracing measures were taken, and with shortages of health workers, medicine, and equipment, the health system was soon overwhelmed, with thousands of infections and rising deaths.

“To fight a pandemic, collective action is needed. Instead, Myanmar has faced a collective trauma,” says Thin Zaw. “The coup destroyed the reciprocal trust both horizontally among people and vertically between people and the government.”

Challenges for Humanitarian Response

Myanmar needs humanitarian assistance in every area, but grueling challenges hamper humanitarian relief delivery. International aid groups grapple with shuttered access, high-cost and high-risk operations, and ethical and political dilemmas: Should they stay or exit? Through which channels should they deliver aid? How can they advocate and work with the military junta? How should their money be spent under the military regime?

Dr. Tun, providing a grassroots medical humanitarian perspective on what is happening in Myanmar, described the multiple problems facing providers and patients on the ground. These include a severe shortage of health workers on the frontline, difficulties getting patients to hospitals, lack of essential medical supplies and equipment, COVID-19 infections, and overall increased mortality and morbidity among IDPs. He presented the results of a mixed-methods survey of health care workers conducted in non-military-controlled areas and conveyed their urgent requests for help. 

A Way Forward

With Myanmar’s health system in collapse, this is a time to focus on strengthening primary health care and leveraging the silver lining of the post-coup softening of ethnic tensions to build a federal health education system for inclusiveness, said Thin Zaw. She pointed to the collaboration between the NUG and EAOs-controlled healthcare groups as an encouraging step towards creating a federal health system.

She urged international actors to be realistic about the limits of their influence over the military junta and to create flexible and politically sensitive aid programs with contingency plans. Yet international organizations must continue all efforts to support the delivery of critical services to the people of Myanmar, especially in areas such as food security, emergency health, and COVID-19 response, she said. “Please don’t forget the people of my country,” she pleaded.

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cover link New Cross-Country Study Underscores the Importance of Health Workforce Development and Socioeconomic Factors in Affecting Health Outcomes
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As the devastating effects of the coup in Myanmar and post-coup conflicts have resulted in escalating humanitarian emergencies, APARC’s Southeast Asia Program and Asia Health Policy Program examine the shifting contours of war and the prospects for a better future for Myanmar’s people.

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Background

Dementia and frailty often accompany one another in older age, requiring complex care and resources. Available projections provide little information on their joint impact on future health-care need from different segments of society and the associated costs. Using a newly developed microsimulation model, we forecast this situation in Japan as its population ages and decreases in size.

 

Methods

In this microsimulation modelling study, we built a model that simulates an individual's status transition across 11 chronic diseases (including diabetes, coronary heart disease, and stroke) as well as depression, functional status, and self-reported health, by age, sex, and educational strata (less than high school, high school, and college and higher), on the basis of nationally representative health surveys and existing cohort studies. Using the simulation results, we projected the prevalence of dementia and frailty, life expectancy with these conditions, and the economic cost for formal and informal care over the period 2016–43 in the population of Japan aged 60 years and older.

 

Findings

Between 2016 and 2043, life expectancy at age 65 years will increase from 23·7 years to 24·9 years in women and from 18·7 years to 19·9 years in men. Years spent with dementia will decrease from 4·7 to 3·9 years in women and 2·2 to 1·4 years in men. By contrast, years spent with frailty will increase from 3·7 to 4·0 years for women and 1·9 to 2·1 for men, and across all educational groups. By 2043, approximately 29% of women aged 75 years and older with a less than high school education are estimated to have both dementia and frailty, and so will require complex care. The expected need for health care and formal long-term care is anticipated to reach costs of US$125 billion for dementia and $97 billion for frailty per annum in 2043 for the country.

 

Interpretation

Japan's Government and policy makers should consider the potential social challenges in caring for a sizable population of older people with frailty and dementia, and a widening disparity in the burden of those conditions by sex and by educational status. The future burden of dementia and frailty should be countered not only by curative and preventive technology innovation, but also by social policies to mitigate the health gap.

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A Microsimulation Modelling Study

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The Lancet Public Health
Authors
Megumi Kasajima
Karen Eggleston
Shoki Kusaka
Hiroki Matsui
Tomoki Tanaka
Bo-Kyung Son
Katsuya Iijima
Kazuo Goda
Masaru Kitsuregawa
Jay Bhattacharya
Hideki Hashimoto
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Air pollution is a silent and invisible killer more lethal than violence, diseases, and smoking.  More than 95 percent of the global population lives in areas with unhealthy air by WHO standards.  Moreover, long-term exposure to polluted air can increase the probability of succumbing to COVID-19.  

Scientific solutions to contain air pollution are available, but limited progress has been made in implementing them.  Temporally, there has been an uneven success in reducing pollution even in the same locality over time, as exemplified by the exercise of political power to change the color of the sky leading up to the 2008 Beijing Olympics (aka Olympic Blue).  

In this talk, Professor Shen will discuss her new book, The Political Regulation Wave: A Case of How Local Incentives Systematically Shape Air Quality in China (Cambridge University Press, 2022).  Departing from extant works, which focus on air data manipulation or the effect of campaigns, the book asks, what explains the systematic temporal variation in actual and reported air quality after controlling for top-down implementation campaigns?  Making use of new data, approaches, and techniques from across social and environmental sciences, the book shows that local leaders ordered different levels of regulation over time based on what their political superiors desired, leading to the titular “waves” of regulation and pollution.  However, the effectiveness of their regulatory efforts depends on the level of ambiguity in controlling a particular pollutant.  When ambiguity dilutes regulatory effectiveness, having the right incentives and enhanced monitoring is insufficient for successful policy implementation.

You can read and download her book in pdf format here.

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Portrait of Shiran Victoria Shen
Shiran Victoria Shen forged her own path at Stanford University by simultaneously completing a Ph.D. in political science and an MS in civil and environmental engineering in five years after graduating Phi Beta Kappa, Sigma Xi, and with high honors from Swarthmore College. Her research explores the intersections of political science, public policy, environmental sciences, and engineering, with a particular understanding of how local politics influence environmental governance. Her first book, The Political Regulation Wave: A Case of How Local Incentives Systematically Shape Air Quality in China, was published by Cambridge University Press in March 2022.  In dissertation form, it was the recipient of two major association awards, the American Political Science Association’s Harold D. Lasswell Award and the Association for Public Policy Analysis and Management’s Ph.D. Dissertation Award. Earlier versions of its parts received the American Political Science Association’s Paul A. Sabatier Award for the best paper in science, technology & environmental politics and the Southern Political Science Association’s Malcolm Jewell Award for the best overall graduate student paper.

You can learn more about her work at http://svshen.com and follow her on Twitter @SVictoriaShen.

Via Zoom

Shiran Victoria Shen National Fellow, Hoover Institution, Stanford University; Assistant Professor of Environmental Politics, University of Virginia
Seminars
Shorenstein APARC Encina Hall E301 Stanford University
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Visiting Scholar at APARC, 2021-2022
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Ph.D

Dr. Cynthia Chen joined the Walter H. Shorenstein Asia-Pacific Research Center (APARC) as visiting scholar with the Asia Health Policy Program during the 2022 winter and spring quarters. She is an Assistant Professor at the National University of Singapore (NUS). Her current research focuses on the well-being and older adults, healthcare financing, and the economics of ageing. She is interested in how demographic, economic and social changes can affect the burden of care, financing needs and optimal resource allocation in the future. Her research has been supported by the Singapore’s Ministry of Health, Ministry of Education, the US National Institutes of Aging, and the Thai Health Promotion Foundation among others. To date, she has published more than 45 internationally peer-reviewed journals on societal ageing, the burden of chronic diseases, and cost-effectiveness research. Dr. Chen obtained her Ph.D. in Public Health, Masters and BSc in Statistics from NUS.

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China’s national health reforms over the past two decades have brought the system closer to the modern, safe, reliable, and accessible health system that is commensurate with China’s dramatic economic growth, improvement in living standards, and high hopes for the next generation.

China’s national health reforms of 2009—continuing many reforms undertaken since SARS (2003)—consolidated a system of social health insurance covering the entire population for basic health services, contributing to a surge in healthcare utilization while reducing out-of-pocket costs to patients – which declined from 56% to 28% of total health expenditures between 2003 and 2017. An expanded basic public health service package, funded by per capita government budget allocations that include a higher central government subsidy for lower-income provinces, provides basic population health services to all Chinese. Now the governance structure consolidates the purchaser role for social health insurance schemes under the National Healthcare Security Administration, with most other health sector functions under the National Health Commission. China’s world-leading technological prowess in multiple fields spanning digital commerce to artificial intelligence—and accompanying innovative business models such as WeDoctor that have not yet been fully integrated into the health system—hold promise for supporting higher quality and more convenient healthcare for China’s 1.4 billion.

However, many challenges remain, from dealing with COVID-19 and its aftermath to other lingering challenges, from promoting healthy aging to the political economy of addressing patient-provider tensions, changing provider payment to promote “value” rather than volume, and deciding which new medical therapies qualify as “basic” for the basic medical insurance schemes. To make China’s investments in universal health coverage and the accompanying rapid medical spending growth sustainable in the longer run, policies need to help the most vulnerable avoid illness-induced poverty, increase health system efficiency, strengthen primary care, and reform provider payment systems.

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Testimony before the U.S.-China Economic and Security Review Commission
Authors
Karen Eggleston
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