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Cost Containment And Access To Care: The Shanghai Health Care Financing Model

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    (University of Waterloo, 200 University Avenue West, Waterloo, Ontario N2L 3G1, Canada; State Innovative Institute for Public Management and, Public Policy Studies at Fudan University, China)

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    The medical savings account (MSA) model of health care financing is viewed as a health care cost containment strategy. Yet, health care expenditure in Shanghai has increased sharply since the adoption of the MSA system. This paper looks into the health care reforms in Shanghai, especially since the introduction of the MSA scheme.From the Labor Insurance Scheme and Government Insurance Scheme to the Medical Savings Account scheme, ordinary Shanghai residents have not benefited from the most recent health care reforms. They have found medical care much less affordable. Disparity in access to health care access has become more evident than ever. Meanwhile, health care cost has increased sharply. China has benefited from an emphasis on prevention and primary care, but the government's recent policies give a high priority to catastrophic disease. This is not a cost-effective approach. Shanghai's health care system needs to break socioeconomic class boundaries if it is to construct a harmonious society. Shanghai's decision makers and various stakeholders have the resources and wisdom to face the challenge.

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    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal The Singapore Economic Review.

    Volume (Year): 53 (2008)
    Issue (Month): 01 ()
    Pages: 27-41

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    Handle: RePEc:wsi:serxxx:v:53:y:2008:i:01:p:27-41
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