Legal analysis: the basic medical insurance fund covers basic drugs, basic diagnosis and treatment items, medical service facilities and emergency medical expenses. The medical expenses of the insured shall be paid by the basic medical insurance fund, and shall be directly settled by social insurance agencies, medical institutions and pharmaceutical business units. Employees shall participate in the basic medical insurance for employees, and the employer and employees shall jointly pay the basic medical insurance premium.

Legal basis: Article 28 of the Social Insurance Law of People's Republic of China (PRC) conforms to the basic medical insurance drug list, diagnosis and treatment items, medical service facilities standards and emergency and rescue medical expenses, and shall be paid from the basic medical insurance fund in accordance with state regulations.