The Path Choice Of Public Finance Supporting The Construction Of New Rural Cooperative Medical System

In order to change the situation that it is difficult and expensive for farmers to see the doctors, and to ensure the farmers enjoy the most basic medical and health services, the government established the New Rural Co-operative Medical Care System in2003. The system was firstly established in four provinces such as Yunnan and Zhejiang and then was pushed all over the country. Comparing with the traditional cooperative medical system, the most obvious point is that the running money of new system mainly is funded by government finances. The government first clearly undertake the responsibility of farmers’basic health safeguard. Under the support of public finance. After12years of development, the new system has made great achievements in a period of time, which also has some problems.Based on the finance related theory, this article is aimed to illustrate the product attributes of rural medical and health services market, to reveal the risk of moral hazard and adverse selection phenomenon, to present the necessity to establish a new type of public finance supporting the new system and analysis the path that financially supports the system. to tell this traditional cooperative medical system in our country from establishing to the process of decay and reveal the close relationship between the rural cooperative medical care system in China financial system reformation, and to show development of the new system in current situation and analysis the main problem that the financial support the new system. With the method of case analysis, this paper analysis the development situation of the new system and the expenditure situation of finance in Zhaoyang district, It analysis the problems in the operation from the perspective of financial. In order to solve these problems, the path of increasing financial investment scale, optimizing the structure of financial investment and improving the mechanism of the relevant to strengthen public financial to support for the new system should be selected.