Efficiency Evaluation Of New Rural Cooperative Medical Scheme Insurance Fund Under The Background Of The New Medical Reform

The New Rural Cooperative Medical Scheme (NCMS) is essentially a rural mutual health insurance system. It can reduce the actual payment price of farmers’ medical services and expand farmers’ demand for medical services, which could improve farmers’ health and prevent peasant become financially-difficult or become poor again. The New Medical Reform Program provided guidelines and policy environment for NCMS in2009. NCMS insurance fund, which serves for the goal of NCMS and raises the funds according to the relevant polices of NCMS. Fund financing, overall Managing and the compensating, which related to the smooth, continuous operation of NCMS, are the important parts of the implementation of NCMS. To some extent, the level of management efficiency of NCMS insurance fund reflects the pros and cons of the system. Analysis and evaluation to management efficiency of NCMS insurance fund of different regions, and finding the reasons of inefficiency, which could further improve the NCMS insurance fund. The research ideas of my paper include4aspects. First, research results, which was found by academics, are used to build system of evaluation. Final variables are selected by the principal component analysis. Second, setting up a stochastic frontier cost function model and making the regression analysis and significance test which is in order to find the independent variables of great contribution to the dependent variable. Third, this paper calculates the management efficiency of NCMS insurance fund through the stochastic frontier cost function model on the basis of relevant data of36sample counties. At the last, suggestions proposed in this paper are in order to improve the management efficiency of NCMS insurance fund.The main conclusions in this research are as follows:Four independent variables, which include the actual per capita fund quantum, the utilizing rate of the fund, the proportion of the compensation of hospitalization costs and the proportion of persons of outpatient compensation, pass through the test of the model and have a great contribution to the dependent variable. This research uses the independent variables selected by the principal component analysis to set up a stochastic frontier cost function model, and makes the regression analysis and significance test by backward stepwise method. The results show that4independent variables pass through the test and they are as follows respectively in order:the actual per capita fund quantum(elasticity of0.75), the utilizing rate of the fund(elasticity of0.552), the proportion of the compensation of hospitalization costs(elasticity of0.173), and the proportion of persons of outpatient compensation(elasticity of0.08).The efficiency of fund management of36samples are in good condition overall after the estimation of the fund efficiency. We use the stochastic frontier cost function model to estimate the management efficiency of the NCMS insurance fund in36samples, which shows that the36samples have vary degrees of inefficiency. The average low-efficiency index is2.99%. The maximum and minimum of the low-efficiency index is19.1%and0.002%respectively, and thus they are in good condition.The36samples are nearly the first and second batch of NCMS. They have got a certain period of exploration in the process of NCMS, which has enriched experience an formed relatively a complete robust mechanism gradually. The specific reasons are:the high level of participation rate and the increasing of financing, the effective model of the division between regulation and management used by some regions, the gradual decrease of sample counties which adopt the mode of family account, and the gradual decrease of per capita cost of management.In all samples counties, Cili County inefficiency index is19.1%, which need to be improved. The reasons that the lower efficiency of fund management of NCMS in Cili country includes:the passive fund-raising means lead the high cost; personal fund-raising is small, and lower proportion; no secondary compensation system and a higher rate of fund balances; funds are not used effectively.Based on the conclusions of this paper, suggestions are proposed from three aspects of the new rural cooperative fund raising, co-ordinate the management and compensation in this paper. Include:First, the fund raising proposals:expanding financing channels, improving the level of funding adaptively; adjusting the order of fund raising, reasonable arrangements for fund utilization; a gradual transition to forcing participation, reducing the cost. Secondly, the coordination of fund:separation of management and administration, raising the efficiency, enhancing the fund level. Finally, compensation:establish and perfect the secondary compensation system, reducing the level of fund balances; publicity patient co-ordination mode, playing the outpatient co-ordinate utility.