China’s healthcare costs fuel consumption in ageing society, but alarms are blaring in the medical insurance fund
- In difficult economic times, Chinese people have become increasingly reluctant to tap into their savings, but they also care more about their health, and for that they’ll spend
- Beijing’s recent plan to boost household consumption promotes traditional Chinese medicine, online hospitals and rehab services that have boomed in recent years
In the span of just two weeks, Li Ying’s meagre monthly pension of 2,000 yuan (US$275) was gone – all spent on the alleviation of her chronic neck pain.
Although she lives in one of China’s most affluent areas with relatively strong welfare benefits, Zhejiang province, the 67-year-old farmer opts to lead a frugal life and sees the value in saving up for a rainy day.
It’s perhaps a wise inclination – or at least one shared by many retirees in the face of China’s uncertain economic outlook – but it’s not necessarily the best mentality to drive consumption and fuel economic growth.
Since I turned 64, all manner of ailments, however minor, have been troublesome
However, some expenses cannot be avoided or put off without life-threatening or dangerous implications.
“Since I turned 64, all manner of ailments, however minor, have been troublesome and have cost me more than all of my combined medical bills before that age,” Li said.
