Abstract: Option theory is introduced and applied to the field of medical insurance,to overcome the traditional medical insurance loss distribution limitation,and to provide a innovative analysis tools and a new research perspective in this paper.Using supply and demand of general equilibrium analysis,the option pricing and actuarial pricing are unified in the medical field,and supply and demand balance principle of medical insurance are put forward,and use the pareto optimal insurance pricing formula to derive classic Black-Scholes option pricing model,alleviating option pricing model in medical insurance area of application obstacles;using barrier option pricing idea,derivation thought of standard option pricing model and ratchet option pricing model to derive the supplementary medical insurance option pricing model containing deductibles,limit of compensation and pay aproportion.Finally,the academic research is applied to China's medical reform and practice of medical insurance,to calculate the pure premium of supplementary medical insurance,and to enrich the research of our supplementary medical insurance pricing method.

Key words: supplemental medical insurance, up-and0out call option, barrier option pricing, Black-Scholes formula