The Moral Hazard In Social Health Insurance And Its Control Strategy

All types of insurances, social or commercial, especially those related to medicine and health encounter inevitably moral hazard. Currently, we are adopting new system of health insurance throughout the nation. How to control the risk of moral hazard is key to the success of new health insurance system.Compared with moral hazard in other types of insurance, moral hazard in health insurance has its own specialty. Because of the professions and consequent information dissymmetry in the medical treatment market, the moral hazard is engendered. Moral hazard creates discrimination and is harmful to system of health insurance.The born characteristics of health insurance make it impossible to evade moral hazard. All we can do is to minimize the occurrence of moral hazard and the negative effect it causes.In China, mixed model in medical social insurance is the legal model for the operation of funds of new employer basic health insurance. Local authorities designed various schemes in the process of finding out a most suitable solution.Now, large portion of profit of hospitals in China comes from selling of medicines and using of most advanced high-tech equipments. As such, the medical treatment suppliers tend to supply excessive medical treatment and the moral hazard is engendered. To achieve our target, we should separate hospitals and medicines. At the same time, setting up a system to recognize and value the prices of medical services. As to the exaggerated pharmaceutical prices, a package of reform on medical administration, toughened supervision on system of circulation of pharmaceutical is required. To achieve the goal of new and inter-active relationship between medical treatment supplier and buyer, from the internal side, we should improve the transparency of medical information. From the external side, innovation involves in co-ordination among medical hygiene system , health insurance system and medicine market circulation.