Legal analysis: The main purpose of medical insurance is to pay for outpatient treatment. When you go to a designated hospital for medical treatment, you can show your medical insurance card to prove your insured identity and registration. Individuals can directly settle the part of medical insurance reimbursement by medical insurance and hospitals, without paying fees first and then reimbursing. Only when the account is settled can the self-funded part be paid with the balance of the medical insurance card or cash.

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

Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, so as to guarantee citizens' right to receive material assistance from the state and society in accordance with the law in case of old age, illness, industrial injury, unemployment and maternity.

Twenty-sixth basic medical insurance for employees, new rural cooperative medical care and basic medical insurance for urban residents shall be implemented in accordance with state regulations.

Twenty-eighth medical expenses that meet the basic medical insurance drug list, diagnosis and treatment items, medical service facilities standards and emergency treatment and rescue shall be paid by the basic medical insurance fund in accordance with state regulations.