China's Urban Health Insurance And Health Care Cost Control

In modern time, the continuance development of "people-centred" conception has been accepted by most people. The ultimate target of development is to upgrade the people's living condition both in material and spiritual aspects. Health condition is related to everybody of our human beings. The topic of the health has become the headline of our society. Almost all governments in the world have placed great emphasis on health insurance. The paper discussed health care and health insurance with the methods of microeconomics and macroeconomics. The special characters of these fields have been concerned. The paper researched the published statistics and data of China, which shown that the proportion of the government has been steadily decreased year by year in the health expenditure, and personal expenditure has increased greatly in recent years, which means that the health expenditure of the government has shrunk and such a situation weakened the health cost control. Meanwhile, there is great unfairness between rural and urban health consumption. The paper reviewed the process of health insurance reform in China, summarized the main achievements and existent problems in it, introduced some valuable experiences from other countries, gave some advices on health insurance reform in China, and discussed the control of pharmaceutical costs.The major synopsis and results were summarized as the following: The existence of "moral hazard" in health service and health insurance markets has caused the demand side and supply side share of health expenditures. Health security system can be divided into three parts— common health services, social health insurance and private health insurance. This division facilitated the discussion of the topic. The basic rule of health care and health insurance reform is "well-balanced integration of efficient economic development and social fairness"; the direction is to build up multilayer health security system. Government should input more account in common health service and medical aids. Social health insurance should extend its coverage, and county mutual health insurance must be developed, which should give more supports from government. It is suggested that we should build up community health care system, develop private health insurance markets, and increase the people's awareness of the health. It is recommended that we must locate on "supply side cost sharing" system, reform health service cost compensates mechanism; carry out vertical integration between health service sector and...