| Rural health plays an improtant role in the whole health system of China, and it is also thought highly by Chinese government. Compared with the health work in the urban, rural health work is weaker, because of lacking financial support, human resources, infrastructure and lower health status than urban residents. At the same time, health service access of rural population is also barried by low socioeconomic status. So health insurance for rural population becomes the concern of government, society and farmers themselves.On August 10th, 1996, Xiangguan Tan who lived in Tujia Hill Village, western of the Hu bei province became the first experimental site for Rural Cooperative Medical in the history, whose name is "clinic of Leyuan community, Du Jia village". Each eligible farmer pay 1 yuan for promium every year, subsidied by the village community paying 0.5 yuan for Rural Cooperative Medical System's fund from collectivity commonweal fund. After enrollment, the farmers only pay 0.5 yuan per time for outpatient service as registration fee. This implemented scheme effectively improved the accessibility of health service of villager, who used to delay the therapy when they have problems in their health status, even it is serious illnesses. So villagers welcome this health insurance scheme. From then on, reform of Chinese rural cooperative health scheme started to be implemented in more area.After reform and opening-up, collective economy in country rapidly shrinks, which leads to difficulties in raising fund of Rural Cooperative Medical. So the coverage rate of Rural Cooperative Medical scheme drop rapidly from 69% in 1980 to 5% in 1986, and Rural Cooperative Medical schemes collapsed at most of countries in China. As a result, most of countrymen are vulnerable to in diseases, and some questions became more and more serious, for example, the difficulty of accessing health services, the high price of health services, and disease-poverty trap."The methods for the establishment of the New Rural Cooperative Medical Scheme"(NCMS) was given by the Ministry of Health, Ministry of Finance, and Ministry of Agriculture on January 10,2003. It required that NCMS would be experimented in the whole country and the government should organize, guidance and support. NCMS which countrymen were voluntary to participate. The fund for NCMS which would be mainly used for catastrophic disease is coming from the individual contribution, and subsidy from collectivity and government.NCMS provides convenient health services and the medical security to the rural populations, reduces the medical costs effectively and promotes the development of the rural health services. Because of the wide range and the complex situation, there are a number of practical difficulties and problems in the process of implementation. These problems seriously impact on the development and the achievements of NCMS. If these problems were not solved promptly, the development of NCMS would be affected directly.This study starts from NCMS 's establishment and operation which is concerned with the interest of the hundreds of millions of rural populations in China. The study is supported by project "the in-depth research on the experimental country of NCMS in our province in 2006" which is organized by the board of health of Jinan. Study group choosed Pingyin County as the investigated field, then investigated the development of NCMS and collected primary information in Pingyin County. On the basis of understanding deeply of the situation comprehensively, this study will summarize experience of the experimental site, introduce the process of implementation of NCMS there and its impact on stakeholders, in order to find out the problems which effected the development of NCMS. Furthermore we also try to find out the reasons which explain those problems and the ways to solve them. In the end we will give the suggestions for NCMS in Pingyin County which is benefit for the building of the New Socialism Countryside.Study methods:Study group carried out Literature Review, Focus Group Discussion, Filed Survey, Key Informant Review, Exit Interview and so on to get a lot of qualitative and quantitative resources. We analyze the information with Description analysis and Analysis method, Chi-square Test method, Typical Case Analysis method and so on.Main findings:NCMS of Pingyin county has been established, which promoted health service system of country to develop, reduced the expenditure of many countrymen on health service, ensured countrymen's health. Especially, by the pharmacy operated by other company not by hospitals and prescriptions checked, the price of health services is obviously reduced. Of course, at the same time there are some questions which is necessary to be resolved. For example, some clinics and hospitals of villages and towns have poor conditions which can't meet the demands of NCMS. The number of administrators exceeds the standard of our government, which leads outlays for operation works to beyond the standard; The level of collecting funds is low, and the origin of funds is not stable; Physical check-up is not carried out as the plan determined, which results in unfair in benefits; The surveillance and management for NCMS lack of effective methods; Management and direction weren't separated; the methods for Management and transaction lags and so on.Policy suggestions:We should innovate and carry out steady and effective mechanism for collecting funds and managing work. We should promote the standard of health service for people. It is necessary to enhance the level of basic medical insurance, that can extend the benefit filed for countrymen. Of course, we should innovate and carry out the mechanism for management work of NCMS .
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