Optimization Analysis On Financing And Payment Levels Of Basic Medical Insurance In China

The Urban Employees Basic Medical Insurance(UEBMI),The Urban Residents Basic Medical Insurance(URBMI),and The New Rural Cooperative Medical insurance(NRCM)are the main components of China’s social medical security system,providing basic medical security for the broad masses of the people.As of the end of 2015,the total number of three basic medical insurance insured totaled 1.366 billion people,covering 97.18% of the total population.Basic medical insurance coverage is wide,and the size of the fund is huge,so the levels of its financing and payment are not only to ensure the balance and sustainable development of the fund,but also a reasonable set to maximize the utility of the insured people.In this paper,the utility function of the insured person is creatively introduced into the balance of income and expenditure of the basic medical insurance fund,so as to turn the balance problem into the optimization problem.At the same time taking into account the insured person’s excessive medical expenses caused by the increase in the proportion of payment is also the innovation of this article.Firstly,this paper explores the optimization of The Urban Employees Basic Medical Insurance.By describing the level of financing and the level of medical expenses of the employees and retirees respectively,the quantitative description of the health insurance of urban workers is realized,and the problem is transformed into optimization problem by introducing the utility function.Secondly,this paper explores the optimization problem of The Urban Residents Basic Medical Insurance,and The New Rural Cooperative Medical insurance.Finally,under the background of national policy to promote the integration of The Urban Residents Basic Medical Insurance and The New Rural Cooperative Medical insurance,this paper explores the optimal financing level and payment level after the integration of The Urban Residents Basic Medical Insurance and The New Rural Cooperative Medical insurance.Based on the solution of the optimization problem,this paper obtains the optimal financing level and the payment level of three basic medical insurance,and explains the rationality through the empirical test.