Reverse Fundraising System and Compensation Effect of the NRCMS

Abstract

This paper firstly introduces the NRCMS(New Rural Cooperative Medical System) and mainly analyses the problems of the financing system and compensation effect: the first problem is the instability of the reverse fundraising system which goes against stable fundraising system and sustainable development.The second problem,then,is the irrationality of the general allowance mode,such as capital decentralizing,the low single compensation and unsatisfactory effects.As a result,farmers are still likely to get poor again because of some serious diseases.This paper puts forward four measures to make the system more appealing,make the farmers more actively participate in social insurance and finally achieve sustainable development of the system.