Elderly chronic diseases and catastrophic health expenditure: an important cause of Borderline Poor Families’ return to poverty in rural China

The huge health expenditure for chronic diseases in the elderly is one of the uncertain factors that may cause the Borderline poor families to return to poverty after China fully lifts itself out of poverty in 2020, especially in rural low-income areas. Based on the latest data released by China Health and Retirement Longitudinal Study, this paper used the two-part model to analyze the impact of elderly chronic diseases on health expenditure and catastrophic health expenditure of Borderline poor families in rural China. Some interesting results were found. For example, elderly chronic diseases such as stroke and hepatic disease have a large impact on the catastrophic health expenditures of families on the edge of poverty in rural China. Therefore, the government should drive middle-aged and elderly people to actively participate in physical exercise and prevent the high incidence of chronic diseases in the elderly. Furthermore, the government should improve the medical insurance system to provide solid support for low-income families and other vulnerable groups to avoid returning to poverty.