In this study, a class dominance characteristics model is applied to analyze Taiwan health insurance policies. Attention is placed mainly upon three areas: ”cost-sharing”、”hierarchical medical care” and ”referral system”. There are two major results: First, for any given level; patient, the required cost-sharing is greater (smaller) when (s)he attends a larger (smaller) hospital Seconds, given the fixed waiting time imposed by the hospital, the larger (smaller) hospital should provide medical care solely to patients who need more (less) intensive care.