Economics Of Poor Medical Assistance

The new poverty colony has emerged since China's embarking on the path of reform andopening-up,the rapid development of social economy,the rapid social transformation and theexpanding of the income disparity.Although China's government has almost solved the livingproblem of poor people by implementing basic living system,their income could hardly beimproved in a short time;therefore,they still can not bear any kind of risks except living.Amongall of the risks,diseases could bring the most harmful results to poor people.Under thecircumstances of social appeal,a government-leading Medical-Aid system which is aimed atguaranteeing poor people's basic medical demand was built up in 2005.Because it is a newly-emerged medical insurance system,there has been an increasing interestin Medical-Aid researching.Although many researchers have conducted lots of analyses,most ofthem are limited on evaluating its effectiveness or estimating the expected demand for aidingfunds.So far,no one has a clear idea about what is the next stage of MA system.The aboveanalyses were only aimed at fixing the disadvantage of MA and contributed a little about how tocope with the shortage of public funds.There have been many theories supporting the implementof MA system,but few of them can be proved by empirical research.Because of the shortage ofvaluable researches on MA,the author plans to make use of some survey on poverty and medicalservices to prove the existing theory,and point out a new pattern of MA system which is free andguarantees the basic medical demand has a advantage of using limited funds with high efficiency.Besides the summarization of existing articles,the main content of this dissertation is separatedin 5 parts.Chapter 3 will conduct an empirical research on how diseases lead to poverty.In fact,a familywith sick members will fall into absolute poverty easily,because of both low income and largequantity of medical expense.This dissertation will build an empirical foundation for the alreadyexisting conclusion.In addition,this dissertation will put the effectiveness of basic living systemin doubt,because a family's degree of poverty can not be measured just by its income.Chapter 4 will analyze what's the inequity of medical consumption between rich and poorpeople by using some data captured from medical survey.The amount of enjoyed services isdetermined by a person's medical need and his economic power.The author will prove those poorpeople with the same medical needs as the rich actually consumed less medical services than thelatter.So we can say poor people had difficulty in making using of medical resources.In addition,the author will conduct a statistic description of the realistic obstacle for poor people inconsumption.The 4th chapter already proves poor people's demand for Medical-Aid system is very huge.As a contrast to the demand,Chapter 5 will evaluate the efficiency of system supply.Firstly,theauthor will have a retrospect of the building-up and developing procedure of MA system,and thenpoint out the its recent pattern can still not solve the conflict between fund supply and demand.MA system is aimed at satisfying poor people's basic demand for curing diseases,so it should notbe used to compensate poor patients' whole medical fees.The author found out the MA system incountryside is more successful than that in urban area,because it linked itself efficiently tomedical cooperation system and alleviated the poor farmers' burden by making use of newmedical resources.It is a pity that this model is not suitable for urban MA system,so governmentshould develop a new pattern named free and basic health care.Chapter 6 will explain what basic medical service is and why this kind of services should besupplied by community hospital.The author will conduct a comparison between 2 groups ofpeople which are separated by MA system.The conclusion is,the new form of MA system issuccessful in encouraging poor people to cure their diseases without regard to their income,andalleviating their medical costs.This new pattern of MA system is welcomed by poor citizens andwill be developed though investing more public finance,so that it can serve more people inpoverty.Chapter 7 will re-mention the above conclusion (Chapter 3) that the basic living system can notdistinguish real poor people from the fake ones,in order to point out this advantage would affectMA system' efficiency.There must be the problem of"free riding"on this condition.In order todetermine which family should be bared exactly,MA system should not only refer to the standardof basic living system,but also rely on its own.That is to say,it can distinguish a real poor familyaccording to whether it has children or old members.Since diseases can lead a family into povertyin a high possibility,MA system's distinguishing mechanism can reduce the bias from poverty,which is caused by basic living system and will absolutely exist.