Chinese Medical Insurance System in a Dilemma

As the senior executives of supervision and administration institution fall from their position because of corruption, and the highest authority pay more and more attention to the medical insurance, the new reorganization and adjustment of the medical system reform are coming. The main problem of Chinese medical system is the result of change in ownership, mistake of government adjustment and low efficiency of supervision and administration.

Due to the increase of medical cost, the government has to ensure the profit development as well as fair distribution of medical service through adjustment and financial means, which can be divided into two methods: the government support medical organization to provide cheap service and support consumers directly through insurance. Before reform, the medical insurance system was realized through the hospital ownership and socialized medical service. But in the process of reform and soaring medical cost, the financial support from the government is even-decreasing. On the other hand, in order to support the huge staff cost, the hospitals have to increase the revenue through medical kickback and unnecessary medical service, which limit the financial support to socialized medical service and ordinary patients, and aggravate the profiteering situation. Therefore, the medical cost is soaring, government financial support is decreasing, the medical service level is declining, and the number of patients unable to get medical service is even growing.

In order to solve Chinese medical system problem, the government has to begin with the reform, and clear the ownership of medical system and industry, responsibility and duty, as well as establish clear, fair financial insurance system and industrial supervision and administration system. It is necessary to endure the difficulty in the long run. Considering to the large scope of China, complexity of different region and polarization of rich and poor, the government should take a long view.