Legal analysis: Complete the integration of supplementary medical insurance and medical assistance system for the needy, incorporate the supplementary medical insurance funds for the needy into the medical assistance fund, and clarify the fund management methods. Form a long-term mechanism to prevent and solve poverty caused by illness, and enhance the function of medical assistance.

Legal basis: Article 29 of the Social Insurance Law of People's Republic of China (PRC) stipulates that the part of the medical expenses of the insured who should be paid by the basic medical insurance fund shall be directly settled by the social insurance agency, medical institution and pharmaceutical business unit.

The administrative department of social insurance and the administrative department of health shall establish a settlement system for medical expenses in different places to facilitate the insured to enjoy the basic medical insurance benefits.