Medical Security System Development Under The Background Of Public Finance

Thirty years on since Reform and Opening-up, China has witnessed tremendous changes:rapid economic growth and huge improvement on people’s living standards. Fiscal and tax reform as the central part of economic reform, contributes to the smooth promotion of Reform and Opening-up and the construction of socialist market economy. Generally speaking, Chinese fiscal and tax reform was carried out under the guidance of public finance ideology. The change was basically following the line of power decentralization:transitioning from unified revenue and expenditure in the beginning of establishment of China to grading lump sum method which features power distribution, further to tax-sharing reform in1994. These transitions have showed the strong determination of government in implementing the idea of public finance. As a result, this philosophy has deeply rooted in the public’s minds.The guidance of public finance ideology, integrations among various elements in the economy and automatic influence from the socialist market economy have contributed greatly to the radical change of Chinese medical security system. The radical change features coverage expansion which makes a great majority all across the country accessible to the medical insurance coverage. And the great transition realized the goal of medical security net construction which features "multiple choices and wide coverage", protecting people health effectively.Vertically speaking, enormous progresses have been made over the decades, but when compared with some developed countries, we are still at a low phase regarding medical security net construction. During the period of planned economy, we are highly praised by international community for guarding a great majority’s health with a relatively low cost. But as the economic reform pushed on, we shifted our focus greatly towards economic development, making us prosper in economic building but lag behind in medical security net building. As was pointed out by an evaluation of sanitation quality carried out by WHO on191membership countries, China ranked144th regarding comprehensive effectiveness and ranked188th regarding the systems’fairness. This agrees with research group of state council on the conclusion that sanitation-related reforms carried out these years was basically unsuccessful. What’s more, the huge gulf between urban and rural areas in accessibility and quality of medical resources creates a unique "double faces" phenomenon in China. Therefore, under the background of speeding-up process of public finance construction, making people enjoy the "high-quality, high-accessibility" medical security net coverage is the essential requirements of socialism market economy.This paper focus mainly on the construction and perfection of medical insurance system under the background of public finance. We first justify the motive of governmental intervention in medical market, review the history of medical insurance system development and develop the concept of medical market, medical insurance market and medical circulation market. Based on these concepts, this paper analyses the drawbacks of current system. In closing, this paper made the attempts to come up with new approaches in constructing and improving the system by fully considering reform practices in our country and referring to three different modes adapted by England, America and Germany.This paper applies data analysis method, empirical analysis, specification analysis and comparative research methods, aiming at realizing comprehensive analysis and a overall presentation of the problem, an insight into the problem and solving problems effectively. The innovation of this paper are mainly reflected in the proposed idea of "three big markets, one system, six objectives", making understanding the complex background easier. In addition, it made the related questions easily understood, described and solved within the framework. The significance of this article are displayed as follows:making attempts in thoroughly understanding and analyzing the complicated situation with new perspectives; proposing a series of useful recommendations on improving current system based on a scientific and overall grasp of it.