Abstract:Based on the CGSS data in 2005,2010 and 2015 and the method of OLS and PSM,this paper evaluated the impact and mechanism of health insurance on subjective sense of well-being with,and calculated the monetary value of implicit welfare via the valuation method of LSA. The results show that the social health insurance is positive to residents’ subjective sense of well-being,the value of implicit welfare accounts for about 24.58% of the total yearly income,and the increase rate of implicit benefits in rural areas is higher than that in urban areas. However,a further classification of income reveals that the implicit welfare of low-income group in rural areas has not been significantly improved. It is probably because the rural low-income group still have a higher family burden when seeking for medical treatment. Accordingly,it is proposed to increase the proportion of reimbursement for rural low-income group,or reduce the threshold of medical treatment,and flexibly design medical insurance for them to alleviate their medical burden,so as to achieve the aim of targeted health poverty alleviation and improve their implicit welfare.