The Operation Research Of Urban Residents’ Basic Medical Insurance System In Yuncheng

Social Security possesses the function of the social mutual aid,especially in the modern society. The uncertainty of diseases makes thesocial basic medical insurance particularly important as well. Before2007,China has established the basic medical insurance for urban residents andthe new cooperative medical insurance for rural residents. However, theunemployed rural residents are not included in the health care system. Inorder to improve Chinese social security system, establish the medicalinsurance system covering all residents and solve the problem in access tomedical service and high cost of receiving such service, the experimentalwork of Chinese basic medical insurance for urban residents finally carriedout in2007. The initiative has a great and long-term significance on socialjustice, social harmony and progress, even the realization of the “Chinadream”.On July28,2009, Yuncheng’s government issued a “people’sgovernment of Yuncheng on printing and distributing Yuncheng urbanresident basic medical insurance try out announcement”, which wasofficially launched the establishment of Yuncheng urban resident basicmedical insurance and marked the “low level, multi-level and widecoverage” medical care system gradually established in Yuncheng. Inrecent years, Yuncheng urban resident basic medical insurance has steppedinto a rapid development stage. The rate of joining insurance reached to20.52%, while compared to the basic and full coverage of “new ruralcooperative”, the rate is still too low, indicating that there still exists aconsiderable part of people meeting urban resident basic medical insurancecondition have not join the insurance. And this affects the compensationlevel to some extent. The factors that affect the compensation level for urban resident medical insurance is mainly determined by the number ofinsurance (the rate of join insurance), funding level, medical expenses andfund balance level. In general, both the number of insurance and the fundlevel are positively related to the compensation level, the fund balancelevel has a negative relationship with the compensation level which isaffected by total medical expenses as well.Through analyzing and evaluating the compensation level of the basicmedical insurance for urban residents in Yuncheng, four methods could beexplored to improve the compensation level: to improve the rate of joiningthe urban resident basic medical insurance, to improve the funding level forurban resident insurance, to control the medical expenses of urban residentbasic medical insurance reasonably, to increase the efficient use ofinsurance fund and a better fund balance level control and to improve thecompensation mechanism.