ABSTRACT
Through viewing the employee medical insurance system, problems were found as below: ( 1) The content of system did not match the name of “urban workers” and “basic medical insurance”. (2) In financing system, some business units and participated people had heavy burden; personal accounts shunt exceed 60% of the total health insurance fund and constituted a reverse subsidy;retirees did not assume the obligation of payment while they could obtain unjust enrichment through the personal accounts of the possible. (3) System inefficient and risky fund cost overruns. (4) Insurance coverage is low within the system. Recommendations: (1) To build a unified national basic medical insurance based on merger residents and new rural cooperative medical insurance. (2) Abolish workers’ medical insurance system, put urban workers into the universal basic medical insurance. ( 3) Introduce “medical expenses surtax”, establish supplementary medical aid fund or direct universal basic medical insurance fund. ( 4) To develop commercial health insurance and build a comprehensive health care system.