Medical insurance financial subsidies are unified allocations from the government's financial departments, which are in the nature of subsidies and are used for residents' medical insurance financial expenditures.

The purpose of this subsidy is to effectively play the role of medical insurance and ensure that the poor population is fully protected. Financial subsidies are the main source of financing for urban and rural residents' medical insurance, accounting for about two-thirds, and individual contributions only account for one-third. Assume that the fund pool of the medical insurance co-ordination fund becomes a huge piggy bank, and the money in it is used to reimburse medical expenses for insured persons. Residents participate in medical insurance and put money into the piggy bank. The finance department provides subsidies according to corresponding standards and also puts money into the piggy bank. The two sums are deposited into the fund pool together.

Financial subsidies are not paid directly to individuals, but are deposited into a fund pool together with the premiums paid by residents. There are financial subsidies for participating in urban and rural residents' medical insurance, but it is not subsidized to individuals, but to the urban and rural residents' medical insurance fund according to the standard.

Purposes of medical insurance:

1. Hospitalization reimbursement

Card holders can use their social security card to handle hospitalization procedures at designated hospitals participating in the insurance, and individuals do not need to pay first For reimbursement, the medical insurance and the hospital can directly settle the reimbursement part of the medical insurance. Only when going through the discharge procedures, the self-payment part will be paid by yourself with the balance of the medical insurance card or cash;

2. Buy medicine at the pharmacy

Card holders can bring their social security cards to designated retail pharmacies to purchase appropriate medicines, and then swipe their cards to pay for the medicines;

3. Purchase commercial insurance

Cardholders can use the balance in their personal medical insurance accounts to purchase commercial insurance, accident insurance, etc.

To sum up, the resident medical insurance subsidy is a subsidy given by the state to protect the health of residents. When income is interrupted or reduced due to accidental injury or illness, certain protection can be obtained according to the medical insurance subsidy terms. money, thus easing the burden. In addition, there is subsidized medical insurance, which is a kind of insurance launched by insurance companies and provides income protection insurance with compensation provided by insurance companies.

Legal basis:

Article 25 of the "Social Insurance Law of the People's Republic of China"

The state establishes and improves the basic medical insurance system for urban residents .

The basic medical insurance for urban residents combines individual contributions and government subsidies.

The government will subsidize the personal contributions required by people who enjoy the minimum living security, disabled people who have lost the ability to work, elderly people over 60 years old and minors from low-income families.