The Research On The Performance Of The New Rural Cooperative Medical Insurance System In Shandong Province

Medical Insurance is a systematical arrangement intended to ease the worries of thecitizens and improve their bodily health. The extent to which the insurance eases theworries is crucial to determine whether a country or region is in the good condition ofsocial welfare. The New Rural Cooperative Medical Insurance System (NRCMIS) is amutual benefiting system organized and supported by the government, financed byindividuals, groups and the government, and aimed at major diseases. The establishment ofthe NRCMIS is of great importance in terms of improving the health condition of people inrural areas, facilitating their ability to fight major diseases, safeguarding the economicdevelopment and maintaining social stability in rural areas. The NRCMIC in ShandongProvince is enjoying a fast development with major achievements. In2010, the totalamount of fund collected amounts to8.855billion Yuan and the number of peoplebenefiting from this reaching145million. With the NRCMIS becoming the basic medicalsystem in China’s rural areas, specialists and scholars are paying greater attention on thescientific evaluation of the NRCMIS’ performance and the sustainable development of theNRCMIS.It is therefore of this paper’s purpose to analyze the performance of the NRCMIS inShandong’s17cities on the theoretical basis of Stakeholder Theory, New PublicManagement Theory and Efficiency Theory. Qualitative analysis is conducted in themethod of factor analysis to detect the characteristics and the regional disparities of theNRCMIS. The research result shows that economic development is greatly related to theefficiency of the NRCMIS with more obvious promotion on the NRCMIS in moredeveloped cities. The distinct examples could be found in Qingdao, Dongying and Weihai.A second research result is that people’s ability and willingness to spend is of greatimportance to the sustainable development of the NRCMIS. A third crucial factor is thefinancial and policy support of the local government. The coverage and degree of benefitcontribute to the last factors.Lastly, from the research results on relevant statistical analysis this paper hopes toprovide suggestions on the improvement and sustainable development of the NRCMIS inShandong. Advices given are to develop economy, increase people’s income, perfect thecurrent NRCMIS, enlarge investments and better medical condition in rural areas.