Medical insurance co-ordination refers to the medical insurance premiums paid by all employers for employees in a co-ordination area, excluding the rest after being included in personal accounts, including financial subsidies; Social donation; Bank interest; Additional income such as late fees. The medical insurance pooling fund belongs to all insured persons, and is managed centrally by social insurance agencies and used uniformly. It is mainly used to pay the medical expenses, operation expenses, nursing expenses and basic inspection expenses of the insured employees. The medical insurance fund shall be stored in a special account for special purposes, and no unit or individual may misappropriate it. Medical insurance is equivalent to social insurance fund, which is used to reimburse medical expenses.

Raising and spending are two keys to ensure the safe and normal operation of the fund. Raising is the basis of the operation of medical security system. Only by raising the required funds on time and in full can the normal operation of the system be guaranteed. The financing ratio is based on the local living and medical consumption level, and the future development trend is considered. Therefore, when determining the overall level, we must carefully investigate and analyze it to be accurate and appropriate. Under normal circumstances, the level of financing should be slightly higher than the level of medical consumption, so as to achieve a slight surplus. However, if there are mistakes or poor analysis in investigation and analysis, or if the future trend of medical expenses cannot be correctly predicted, and the financing level is lower than the predetermined level of medical consumption, there may be the risk of overdraft in fund operation.

Legal basis: Article 64 of People's Republic of China (PRC) Social Insurance Law includes basic endowment insurance fund, basic medical insurance fund, industrial injury insurance fund, unemployment insurance fund and maternity insurance fund. In addition to the basic medical insurance fund and maternity insurance fund combined accounting, other social insurance funds are accounted for separately according to social insurance types. Social insurance funds implement a unified accounting system throughout the country. The social insurance fund is earmarked for special purposes, and no organization or individual may occupy or misappropriate it. The basic old-age insurance fund will gradually implement national overall planning, and other social insurance funds will gradually implement provincial overall planning. The specific time and steps shall be stipulated by the State Council.