ABSTRACT
To set up a health insurance program to facilitate a rational allocation of health re- sources,a scientific theory of health economics must be founded as a guidance and the percentage of the supply of health resources must be fixed in the GNP Consideration should be given to the ways in which the limited health resources are to be well allocated with the financial performance of the service units guaranteed at the same time.The current allocation of China's health resources indicates that the insuf- ficiency of national input go hand in hand with the false appearance of the ouersupply of such resources, which is called the"False Appearance Demand relationship"or"Nonensuring Line Demand Relationship".The divergence between the ensuring line and the nonensuring line shows the irrational waste-causing allocation of health resources.To help the establishment and improvement of China's health security system and make full and rational use of the health resouces,a social insuring line show- ing the regular total input of health resources muse be plotted;the macro—control function of the gov- ernment given full play;the reimbursement mechanism of medical cost improved;and the application of the law of value to the allocation of health resources instituted under the principle of fairness.