The medical insurance’s objective is to support people who are sick and help them to regain their health. In general, three kinds of insurance models can be found:
Government tax-funded systems pay for health services out of general government revenue. There may also be some special health taxes, e.g., on health-damaging goods or activities. Decisions about the overall funding of services are made as part of the overall planning of government expenditure.
Social insurance systems pay for health services through contributions to a health fund. The most common basis for contributions is the payroll, with contributions from both employers and employees. Contributions are based on ability to pay, and access to services depends on need. The health fund (or funds) is usually independent of government, but works within a tight framework of regulations. As a general rule of social insurance systems, entitlements to services will be listed in detail, and contribution rates will be set at a level intended to ensure that these entitlements can be met.
Private actuarial insurance is based on risk. People pay premiums based on the expected average cost of providing services for them. People who are in high-risk groups pay more, and those with low risks pay less. Services covered by the insurance may vary between different companies and different insured persons. The system can be compared with the insurance of a car or a house.
Among current issues in China related to Medical insurance are questions of coverage and portability, cost containment, the improvement of health-related services and benefit packages, as well as the insurance of migrant workers.
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