The Factors Assessment Of Illness Insurance Fund Affordability

The promotion of serious illness insurance is big project which is good for human beings. In practice, serious illness insurance has been piloted in several provinces in our country and according to the different circumstances of each region, government designed suitable and different payment modes. In just two years, serious illness insurance has made considerable progress. At the same time, around the affordability of catastrophic insurance fund also faces enormous challenges, many regions of income has been over expenditure, the annual deficit balance, long-term equilibrium illness insurance fund has been big problems. Based on this, this paper will use actuarial thinking, statistical analysis techniques to analysis and research the affordability of catastrophic insurance. With principal component analysis, many factors which may affect the affordability of catastrophic insurance will reduce to two major factors which is economic and social factors. And for the more critical economic factors, from the long-term and short-term aspects, both internal and external perspective, this paper will assess the affordability of catastrophic insurance fund. What’s more, the assess result will be a basis to give some comments and suggestions for illness insurance long-term healthy development and insure the illness insurance fund affordability and sustainable development.Firstly, the use of principal component analysis, two key factors selected from a number of economic and social factors affecting the affordability of catastrophic insurance fund, in which economic factors, including funding criteria, compensation standards. Per capita GDP, per capita disposable income and per capita medical expenses; social factors including age structure, education and technological progress; Thereafter, the more critical economic factors split into internal factors and external factors, internal factors which include financing standards and compensation standards; external factors, including per capita GDP, per capita disposable income and per capita medical expenses. Thereafter, the paper starting from internal factors, calculated in2015different provinces across the country in the short term funding criteria and compensation standards of serious illness insurance fund annual balances using historical data and illness insurance pricing principle, serious illness insurance fund to assess the short-term affordability. Meanwhile, starting from external factors, the development of the world learn from the medical insurance fund, to our long-term illness insurance fund to assess the affordability Finally, policy recommendations are given based on the above analysis of long-term illness insurance fund sustained and healthy development.Chapter I is introduction. Paper gives the background of this writing. Everyone has the opportunity to have medical service in China. But there are still so many people become poverty because of serious illness. According to this phenomenon, in August2012by the NDRC, the Ministry of Human Resources and Social Health, Ministry of Finance, Ministry of Civil Affairs, the CIRC six ministries jointly issued "guidance regarding the development of urban and rural residents illness insurance work", the implementation of the method to a serious illness insurance. Since then, serious illness insurance has carried out a pilot in various regions of the country. What’s more. The pilot has achieved success. The first chapter also gives the content and structure, advantages and disadvantage of this article. So that readers can have a basic understanding of this article.Chapter II is illness insurance. This part of the six ministries issued "guidance" a certain degree of interpretation, from serious illness insurance funding mechanism, compensation mechanism and operation mechanism of the three angles of the mechanism of catastrophic insurance for analysis. And relevant research literature stage illness insurance and catastrophic insurance fund will be summarized and explained.Chapter III is illness insurance fund can afford. This chapter first gives the definition of catastrophic insurance fund affordability. Then in terms of income and expenditure catastrophic insurance fund, the analysis stage of serious illness insurance fund affordability situation.Chapter IV is illness insurance fund affordability influencing factors. This chapter is the core of this paper, the first under the affordability of catastrophic insurance fund definition, from the Fund’s income and expenditure of the fund two aspects of serious illness insurance fund affordability factors were analyzed, from the degree of importance of the factors, quantifiable starting with the easy-acquired screened out eight key factors. But the study eight factors on the affordability of catastrophic insurance fund is still too complicated, so this article using principal component analysis, each of the eight factors further reduced to two factors economy and society, and the empirical results based on principal component analysis is given31provinces in the country at this stage score result, the provinces of serious illness insurance implementation will be described.Chapter V is illness insurance fund affordability analysis. According to the analysis result of Chapter IV, aiming at the most important economic factors which is got from principal component analysis, economic factors has been further refined into internal factors and external factors. Then from the short-term and long-term perspectives, the paper analyses the affordability of catastrophic insurance fund.Chapter VI is conclusions and recommendations. Firstly, this chapter summarizes the conclusion of this article. Then based on the conclusion, the paper gives some suggestions and methods which can enhance the affordability of catastrophic insurance, from both short-term and long-term perspective.