China's medical insurance system is in trouble. Simply put, it will not make ends meet in a few years if no steps are taken.

The medical insurance fund has failed to keep up with the surging rise in medical expenses that have been growing at a double-digit rate each year. According to the Chinese Academy of Social Sciences, it is going to see a shortfall nationwide around 2020 at the latest if things continue as they are.

This has led to calls for people's contributions to the fund to be increased and for the government's contribution ratio to be raised. However, the latter has prompted concerns that it might put strain on government finances and even suggestions that it might later lead to "excessive social welfare". Yet such concerns are unwarranted because the level of social security in China remains low.