At present, the coverage of social medical insurance is very limited, which shows that the compensation for medical expenses has a certain upper limit of payment and reimbursement scope. Commercial insurance companies can compensate patients' out-of-pocket expenses and income loss by providing some supplementary medical insurance products, such as hospitalization allowance insurance and specific disease insurance, in view of the service demand beyond social medical insurance coverage. This can give full play to the advantages of voluntary insurance and comprehensive protection of commercial health insurance, and meet the higher-level medical service needs of some special people without increasing the financial burden of the state. At the same time, due to the limitation of social medical insurance in the payment of medical expenses, the high expenses of many seriously ill patients cannot be fully guaranteed, which has caused a huge economic burden to patients' families and units. For medical expenses above the payment limit of social medical insurance, commercial health insurance can compensate by providing high cost protection for serious illness. For a large number of people without medical insurance, such as employees of some foreign-funded enterprises or private enterprises, individual industrial and commercial households, employees' families, children and other urban non-working population and farmers in some rich areas, commercial insurance companies can provide them with voluntary and long-term comprehensive medical insurance to supplement social medical insurance in scope. In view of the problem that social medical insurance funds, especially pooling funds, are too small in scale and weak in risk resistance, commercial insurance companies can provide reinsurance to some social medical insurance institutions to share the risk of their high expenses and improve the risk resistance of local pooling funds. In addition, because the demand for medical services is multi-level, commercial health insurance can well solve the high-level medical security problem that some people need through voluntary insurance. China's socialist nature and national conditions determine that the current medical security system in China includes both government-run social medical insurance, rural cooperative medical care and commercial health insurance run by commercial insurance companies. The ability of social medical insurance in constructing the whole national medical security system is limited. Rural cooperative medical system and commercial health insurance play an important role in establishing a unified, standardized and multi-level medical security system in China. With the further improvement of China's socialist market economic system and the increase of residents' income, the position and role of commercial health insurance in improving the national medical security system will gradually emerge.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.