Longer life expectancy and improved health are key indicators of economic growth. As such, strategies to bolster the medical security system are priorities in government budgeting. The government is dedicating all available resources to better healthcare in rural and underdeveloped areas, narrowing the urban-rural healthcare gap, and achieving equitable healthcare resource distribution. This study examines the effect of monetary policy on healthcare affordability, focusing on China's Urban and Rural Basic Medical Insurance (URRBMI). It investigates how macroeconomic policies, such as interest rates and inflation control, affect healthcare costs and shape URRBMI's financial protection. Using an integrated methodology, including a literature review, theoretical framework, and econometric analysis, the research uncovers how monetary policy impacts healthcare costs and URRBMI's effectiveness. The findings highlight the importance of monetary policy in healthcare affordability. The study recommends collaboration between monetary authorities and healthcare policymakers to improve China's healthcare system's sustainability and effectiveness. Furthermore, these insights are crucial for refining URRBMI and provide new understandings of optimizing macroeconomic policy interactions with social welfare programs.
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