China’s New Rural Cooperative Medical Insurance From The Angle Of Economics

The traditional rural cooperative medical care system is in production, distribution and political rights, it is like the people’s communes which provided financial support for the cooperative medical care. It also provided stable and reliable organizational resources for the traditional rural cooperative medical care system. The traditional rural cooperative medical system is based on political society, it rely on its running strong community stability and the closed regional close. Although the initial cooperative medical community residents participated the traditional rural cooperative medical system in voluntary which reflecting the nature of the cooperation, but later, to the people’s communes, the cooperative medical care are widely spread across the country, at this time, farmers participated the traditional rural cooperative medical care system partly in voluntary, partly was forced by the government. Although the farmers involved in the farmers’ cooperative medical insurance, the reimbursement procedure was so complex, the visiting hospitals were restricted, also farmers from the rural cooperative medical insurance benefit limit on the reimbursement of drug selectivity. These all the reasons farmers have low passion about the rural cooperative medical insurance.In2003, the central government give the farmers living on the central and western regions except the urban family10yuan per capital every year once they participate in the new cooperative medical care for cooperation in Medicaid funds. Also at the same time, the local finance government subsidies the farmers who participate in the new cooperative medical care each year not less than10yuan per capital. The government should make sure that the farmers participating in the cooperative medical system to resist disease risk to fulfill payment obligations cannot be the farmers’ burden. This is the first time in history that our government make such big effort, issues such a large-scale investment in accordance with the" Eleventh five-year plan to solve the farmers’ basic medical and health issues of "the requirements that the new rural cooperative medical could be involved by more than80percent of the rural people until2010.Comparing to the rural cooperative medical system in the past, The new rural cooperative medical insurance has some new factors, such as to rely on government financial and illness co-ordinate the main county units to share the risk and take the principle of voluntary participation.The stage of the reform and the effect of the objective of this paper is to review the rural medical insurance in China, combined with the uniqueness of rural China, comparing the domestic and foreign developed countries, developing countries in the medical insurance system and the results to find the Chinese medical insurance can be the direction of reform and measures. In this paper, from the characteristics of medical insurance in rural areas of China, through the development of longitudinal combing Chinese rural medical insurance; horizontal comparison of domestic and foreign medical insurance system, the insurance economics, institutional economics, management economics, welfare economics perspective to provide some references for the reform of the rural medical insurance current.This paper discusses the innovation of this paper is different from the cooperative medical insurance system of rural China, carries on the discussion to the Chinese rural cooperative medical system from the two aspects, and from the institutional economics, behavioral economics and the demand aspect to analyze how to implement the rural medical insurance system is the best.Horizontal research:This article compares the domestic and international rural cooperative medical insurance system and make some suggestions about how to do a good job in implementation of rural cooperative medical insurance protection and policy support for the government:establish and improve the medical assistance system, strengthen assistance to the weaken people, expand the health insurance to the surface, to promote the diversification of forms of medical insurance, regulate the health insurance estimation, strengthen the parties supervision.Longitudinal studies:research the history of China’s rural health care reform and pointed out that the in measuring the health insurance in medical system, it should not only emphasize the coverage, but also explore the depth, the amount of determination and reimbursements. Also the implementation of the rural cooperative medical insurance should take into account the limitations of rural medical facilities and insurance, so as to fundamentally solve the problem of poverty caused. From the perspective of institutional economics:government-led institutional change at the same time with the increasing of farmers’ demand for new rural cooperative medical system, so that the new rural cooperative medical care system into the middle of the proliferation of institutional change from supply oriented to force institutional change, this is a realistic choice of the new rural cooperative medical care system.From the perspective of behavioral economics:local governments need to take measures to increase farmers’ income and unified rural health insurance policy, so as to increase the participation rate of rural cooperative medical insurance.From the point of view of the factors of rural health care needs:to reduce the insurance price, increase the income of farmers, and promote the educational level for the farmers, so that it can increase the enthusiasm of farmers insured.