“…The policy enlightenments of this study are as follows. First, the government should continue to expand the input of basic public services and social insurance, strengthen the basic medical facility construction, perfect the public medical insurance system, enhance the supply capacity of medical and health services, give full play to the health effect and economic effect of public medical insurance system, strengthen individual human capitals, and improve their labor productivity ( 11 ). Second, to realize the reasonable allocation of limited financial funds, medical insurance at different levels can be provided to different people, and the emphasis can be laid on elevating medical subsidies and compensation proportion of major diseases for disadvantaged groups, such as rural middle-aged and aged people and low-income people ( 16 ).…”