Although the reform of the medical system in China has made certain achievements during the past 30 years，it is not successful as a whole. Currently the medical and health industry has distinctive characteristics of marketization and commercialization. The traditional systems of free medical care and labor protection medical care have encountered great difficulties. Various problems also exist in the medical insurance system for employees in cities and towns and the new rural cooperative medical system. The blueprint for medical reform in 2008 looks great，but contains no substantive innovation or concrete measures of government investment and therefore can not be viewed with too much optimism. In reforming the medical system，China should adhere to the public interest nature of the medical and health industry and to the principle of “three separations” in the medical and health care administrative mechanism，so as to establish integrated medical and health care system and medical assistance system that cover all the people in the country and make medical service available to all citizens in China.