Basic medical insurance is a social insurance system established to compensate workers for economic losses caused by disease risks. The medical insurance fund is established through the contributions of employers and individuals. After the insured person has medical expenses, the medical insurance agency will give certain economic compensation to avoid or reduce the economic risks caused by illness and treatment.

Basic medical insurance means that employees can get affordable and appropriate medical technology when they are sick. Medical diagnosis and treatment technology is constantly developing, and some high-tech and drugs often need to pay high fees. If the economic conditions do not allow, it is bound to cause the medical insurance fund to overspend and "go out of danger" and make the medical insurance system unable to operate. Therefore, most employees will not get basic medical insurance.

The basic medical insurance premium shall be paid by the employer and individual employees. Employers and employees shall pay the basic medical insurance premium in full and on time. If it is not paid in full and on time, the basic medical insurance fund for its medical expenses will not be paid, regardless of personal accounts. The employer shall pay the basic medical insurance premium at 6% of the total wages of all employees.

Legal basis: Article 23 of the Social Insurance Law of People's Republic of China (PRC).

Employees should participate in the basic medical insurance for employees, and employers and employees should pay the basic medical insurance premiums in accordance with state regulations. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic medical insurance for employees and other flexible employees can participate in the basic medical insurance for employees, and individuals pay the basic medical insurance premium in accordance with state regulations.