Abstract: This article reviews the health insurance reforms in China for the period from 2002 to the present. It stated that 16th National Congress of the Communist Party of China introduced significant amendments to health insurance system, balancing the negative impact of capitalist mechanisms, on the one hand, and justice and equality – on the other. This stage of development in China’s healthcare insurance system is described as the “second generation” in healthcare system, characterized with the change of government’s role in allocation of resources in healthcare sector: proliferation of “wild capitalism” in medicine is replaced with the concept of granting freedom to the market mechanisms under the government supervision. The reforms of PRC government in the area of health have a clear social focus. The state takes over responsibility for health of the citizens, which was released to a free market in the “new course” of the 1980s – 1990s. At the same time, the former paternalistic scheme is replaced by the equal system of interaction between society and the government. In all cases, the insurance funds are formed out of personal deposits of the citizens and deposits of local and central authorities. Municipalities are responsible for majority of decisions in the area of development of insurance schemes. The government’s role consists in establishment of minimum deposits and maximum coverage. This is how the central authorities, local administration and citizens are involved in insurance schemes on equal terms.

Abstract: This article examines the current health insurance system in China. Emphasis is made on determination of the key features and peculiarities of Chinese health insurance system, as well as its flaws and ways for overcoming them. The author believes that resolution of major issues in Chinese health insurance system requires increased state involvement thereof, since the marked-based approach that has been in effect for the past 30 years lead to inequality and deterioration of the quality of healthcare. The following recommendations are made on the improvement of health insurance system: launch the targeted financing projects that would allow the citizens with especially dangerous diseases, such as cardiovascular, oncological, digestive and nervous system, diabetes, to be paid in full by insurance and state subsidies in receiving medical services and medications; forgo the principle of “annual limit” for medical services and medications under insurance coverage; unify insurance payment systems in different regions in order to improve the quality of rendering healthcare services in poor areas. The author also offers to consider the possibility of implementation of the universal guaranteed service standards that would ensure equal level of the quality of basic services regardless the type of insurance.

Abstract: From the historical perspective, this article explores the establishment of the system of state medical insurance in China. The historical period of this establishment was selected due to an abrupt change in the system of medical insurance as a result of creation of the People’s Republic of China – the system of medical insurance changed from private to state-controlled. Prior to 1949, insurance was issued by private companies, then replaced by state medical insurance. This article gives attention to the key points in establishment of the system of medical insurance, as well as examines the main legislative bills that served as the basis for creation of the state insurance system. The author substantiates the idea of the periodicity of the development of China’s system of social medical insurance. The history of development of this system includes three stages: each of which is tightly connected to a specific strategy of socioeconomic development of PRC authority. Attention is also paid to redistribution of resources of the system of medical insurance between a city and a village, which vividly reflects the need for adjustment of the system of medical insurance to China’s rapid industrialization in that chronological period. The author describes the flaws of the system and government actions aimed at their overcoming.