Analysis Of China's New Rural Cooperative Medical Care System

Enjoying social security is one of the basic rights belonging to the whole community members. In terms of constitution of China, it regulates clearly that under the condition of old-aged,illness,or losing working ability, citizens of People's Republic of China possess the right of acquiring help from country and society. However , rural dwellers has been excluding from social security. For the existence of the urban-rural dualistic structure, investments and policies of central and local government are made a great difference between urban dwellers and rural dwellers. Taking medicare for example, social medical insurance system has been set up in urban. Most urban dwellers could obtain more security by less input, depending on the huge investment from corporations and country. On the contrary, rural dwellers never gain any medicare in fact, though they contribute a lot to the original accumulation of the country. Once popularized cooperative medicare are sill established by themselves and collective, and the government don't give any economic support except intervention in some public sanitation. Rural dwellers become the biggest group which is at one's own expense on medicare. Because of aging-population and increasing price on medicine, medical expenditure increases faster than peasants income. So more and more peasants can't afford the increasing medical expenditure. At the mean time , illness always results in poverty. In order to solve the medicare problem of rural dwellers, State Council makes a decision to carry out New Type Rural Cooperative Medicare System.Rural medicare is the basic need for peasants subsistence. Improving the service goes a long way to the strengthening of government protecting toward peasants. In 2002, State Council issued the bill about setting-up New Type Rural Cooperative Medicare System. So New Type Rural Cooperative Medicare System has been spreaded. This paper starts from the basic public finance theory, and analyses the necessity of public finance intervention. After that, it comes to...