Issues of health care financing in the People's Republic of China

Abstract

The major issue of health care financing in China is how to allocate limited resources to provide effective health care services for a population of about 900 million. There are three major types of health care insurance coverage in China: (1) public expenses medical insurance, (2) labor medical insurance and (3) cooperative medical service. The strategies for cost containment in China include the visit fee. referral system, herbal medicine and hospital payment system. The role of the central government is minimum in direct subsidies. The central government emphasizes the maximum community participation and involvement in health services. The general implications of the Chinese experiences may be useful concepts to be considered by developing countries.