Research On Financing Mechanism Of Shanxi’s New Rural Cooperative Medical System

In2002, our country’s government started the construction of the implementationof the new rural cooperative medical system. With dozens of years of development,local governments have made some achievements in the construction of new ruralcooperative medical system. According to the latest data showed by the Ministry ofhealth, China’s new rural cooperative medical system has basically reached universalcoverage. Under the call of the central government，the government of ShanxiProvince actively explore new initiatives of new cooperative medical system.Farmers’ financing standards have improved year after year, and the averageparticipation rate has reached99.3%by2013. The implementation of new ruralcooperative medical system is the inevitable requirement of building a comprehensivewell-off society, and is also the strong guarantee of social stability and harmony.Farmers should join the new rural cooperative medical system, which will improvetheir personal and family ability against the risk of serious illness, and avoid thephenomenon about poverty caused by illness happening again. We should also see theproblems existing in the new rural cooperative medical system. Raising funds hasbeen the biggest obstacle to the construction of new rural cooperative medical system.Without adequate funds, rural medical and health condition will not be improveddramatically, and farmers cannot really experience the benefits of the new ruralcooperative medical policy. Moreover, the shortage of funds is not conducive to thesustainable development of new rural cooperative medical system. So， localgovernments should combine with the level of economic development and the realhousehold income of the local farmers to develop a scientific and reasonablefund-raising standard.This paper mainly uses the methods of dynamic analysis, system analysis, andliterature research and so on in the process of writing. The opening part reviews ourcountry’s traditional rural cooperative medical system and introduces the developmentstatus of the new rural cooperative medical system based on summarizing theliteratures at home and abroad. This paper also summarizes the statistical data released by the government and expert literature. This paper focuses on theconstruction of Shanxi new rural cooperative medical system, especially financingsituation and problems on Shanxi’s new rural cooperative medical system. The fifthchapter is an introduction of foreign rural medical security financing experience,which gives certain inspiration to financing mechanism construction of Shanxi’s newrural cooperative medical system. In the last part of this paper, according to thefinancing mechanism problems of Shanxi’s new rural cooperative medical system, Iput forward the related policy and suggestion.Shanxi province is located in the central region of China and the economicdevelopment is extremely unbalanced. Like Xinzhou and Lvliang, many countieswere named the national or provincial poverty counties. In these areas, farmers areunable to take the fees because of their low income. Local governments’ stretchedfinances lead to fiscal subsidies difficult. So, I think that Shanxi government shouldcontinue to increase the intensity of investment in reality and develop diversifiedways of financing. We should announce related policies to encourage theestablishment of non-governmental charitable organizations. In regions whereconditions permit, we can realize unified payment, save the cost of financing, andimprove work efficiency. I believe that development of new rural cooperative medicalsystem will be more healthy and sustainable if financing mechanism improves.