Development of the New Rural Cooperative Medical System in China

Based on a survey conducted by our research team at the Chinese Academy of Social Sciences, the present paper reports on the development of China＇s new rural cooperative medical system set up in late 2002. The new rural cooperative medical system is different from the old system in that it is organized, guided and supported by the government but that rural residents voluntarily participate in its administration. It is financed by individuals, collectives and the government. The new cooperative medical system focuses on serious disease planning and mutual aid and fraternily between rural residents in health care. The results of our survey indicate that the new rural medical system has been successful up to now but that it also has some problems. China needs to pay more attention to overcoming the difficulties and challenges it faces in terms of future medical needs so that a mechanism for its sustainable development can be established.

The impact of the New Rural Cooperative Medical Scheme on the“health poverty alleviation”of rural households in China

This study investigates the impact of the New Rural Cooperative Medical Scheme(NRCMS)on rural households to escape poverty.We employ the instrumental variable method,the IVProbit model,to analyze the national data from the rural-resident field survey by the China Family Panel Studies(CFPS)in 2016.Based on the large-scale data,we found that,first,the hospitalization of family members is the key factor in increasing the risk of the family falling into poverty.The NRCMS has significantly reduced the likely risk of falling into poverty.Second,the impact of the NRCMS on poverty alleviation varies among groups with different levels of income.There is no impact on the upper-middle and high-income groups;in contrast,the NRCMS has substantially improved the capacity of low-income rural families to prevent poverty due to illness,especially for the lower-middle-income group.Third,there exist significant regional differences in the impact of NRCMS on the health poverty alleviation of rural households in China.The NRCMS has successfully reduced the risk of rural households in the western region falling into poverty,simultaneously,no significant impact on those in the eastern and central regions.In order to diminish and eliminate poverty eventually and boost rural residents'capacity for income acquisition,we propose the following:raise the actual compensation ratio of the NRCMS,control the rising expense of NRCMS by promoting the payment method reform,construct the comprehensive healthcare system in the western region,strengthen the medical security for the poor in remote area,and enhance the living environment for rural residents.

40 Years of Rural Cooperative Medical Service

Our story dates from 40 years ago, on August 10, 1966, when China＇s first institution of rural medical service was inaugurated at a county called Changyang, Hubei Province, Central China, where people of Tujia, an ethnic minority group, live in compact communities. It was actually a clinic at a Dujia Village in the county, which charged itself with the task of making primary or basic medical care available and affordable-- to all the villagers. China has undergone tremendous changes since then, and now its economy becoming increasingly market-oriented. Despite that, rural cooperative medical service has kept expanding at Changyang though having experienced twists and turns over the past four decades. The county has been chosen by the central authorities to try out a new type of rural medical service, which in many ways is different from the old pioneered by Dujia in Changyang County.