The Risk Of Moral Hazard And Countermeasures In The Operation Of The New Rural Cooperative Medical Service

The risk of moral hazard behavior resulting from the operation of the New Rural Cooperative Medical Service (NRCMS), made a serious erosion of the medical fund on NRCMS. The prerequisite of fund security guarantee and NRCMS's system fair are effective control and restraint. The risk control of moral hazard became the conundrum both on the theory and practice because the serious asymmetric information among the three main bodies of NRCMS's transactions (the supervisory body-local government and agricultural agencies (IICA), the provider of medical services-medical services institution, the demand-side body-all the farmers participate in it), and the risk of moral hazard behavior is very hidden.Our research began from the status of the NRCMS's risk of moral hazard, made the reason analysis and corresponding Countermeasures on the supervisory body, the provider of medical services and the demand-side body. This dissertation is to make a restriction of the risk of moral hazard behavior in order to control the moral hazard and reduce the medical costs.The doctor induced participation farmers' over-consumption of medical services in the operation of NRCMS easily because the cooperative medical care funds mainly through fixed-point medical institutions which is lacking of incentives mechanism on costs control. The participation farmers have the risk of moral hazard also because the medical expenses can be reimbursed. Moreover, there are some disadvantages on management of the NRCMS's agencies. The rising of medical costs resulted from the reasons mentioned above. This dissertation is to make recommendations are as follows: Firstly, to improve the policy propaganda about the NRCMS and strengthen the idea of help-aid mutually to participation farmers, to enhanced awareness of legislative concepts on participation farmers, to establish the correct concept of justice and benefit, to prevent the participation farmers in the misuse of combined medical services. Secondly, to improve the new compensation mechanism of the NRCMS, to use the proper control methods, to constraint the over-consumption or pre-consumption during the medical services in order to control the risk of moral hazard. Providers for medical services should be through the improvement of medical service price compensation mechanism, binding mechanism, fixed-point assessment and grading of medical institutions and industry to advance and retreat mechanism integrity education, strengthening the whole health care system of moral self-discipline, improve the quality of doctors to reduce the supply-side induced demand, to contain medical side of the spread of moral hazard; for IICA and the staff of the NRCMS's agencies mainly through the establishment of local governments together to implement NRCMS's incentive and restraint mechanisms, improve the new operating mechanism medical fund, jointly run improve NRCMS related funding, strengthen the relevant ideological education staff, as well as to speed up the Government's new legislative measures to reduce the regulatory side of moral hazard. Only by the way mentioned above, the problem that the farmers are reduced to poverty or restored to poverty because of diseases has been really resolved.