Yujiao Yao ^*

• School of International Studies, Sichuan University, Chengdu, China

The constantly rising healthcare costs have placed a heavy burden on individuals. In an effort to enhance residents' healthcare coverage, the Chinese government is attempting to collaborate with commercial insurance companies to introduce inclusive healthcare insurance products. However, the cooperation between the government and enterprises in advancing the implementation of inclusive healthcare insurance is constrained by various factors. To promote collaboration between the government and enterprises and uncover the evolutionary patterns of cooperative behavior, this study adopts an evolutionary game model and constructs a prospect value matrix integrating prospect value functions and weighting functions based on the assumption of bounded rationality in prospect theory. The matrix is then analyzed. Through numerical simulations in the dynamic evolutionary process of cooperative decision-making behavior, the study discusses the main factors influencing the stable outcomes of cooperation evolution. The research reveals that perceived benefits and perceived costs can accelerate the realization of stable strategies for the government and inclusive commercial healthcare insurance. Under certain conditions, uncertain parameters such as risk preferences and loss sensitivity have varying degrees of impact on the evolutionary outcomes. 1 2 Literature review 2.1 Inclusive Medical Insurance Inclusive Medical Insurance (IMI) is a novel form of critical illness medical insurance primarily designed or guided by local government departments and provided by commercial insurance companies. It operates on a voluntary participation basis and serves as a supplementary