Maternity Insurance Fund Depletion and Universal Two-Child Policy in Qinghai Province in China

Abstract

Since the dawn of humanity, women have acquitted themselves creditably with this responsibility of childbirth even at the peril of their lives. Overtime, the politics, process and social mores that surround pregnancy and birth have evolved along with the growth and maturity of the medical profession, and the art and craft of motherhood. However, the introduction of the universal two-child policy in China without corresponding change in the income and expenditure mix of the maternity insurance schemes in Qinghai province threatens the sustainability of maternal health initiatives for minority ethnic groups in Western China. The analytical model used in this study hybridizes a system dynamics and actuarial model to express the maternity insurance expenditure and income function. The study noted that at the current contribution rate of 0.5%, the maternity insurance fund in Qinghai province will be depleted by the end of 2020 and this can influence catastrophic maternal health crisis in the poorer region. The analysis also shows that if the contribution rate can be raised to 0.75%, the depletion rate of the maternity insurance can be prolonged. We proposed an increase in the current rate of contribution of the maternity insurance fund in Qinghai province; improve investment income for the maternity insurance fund and other reliable sources of sustainable funding.