The medical assistance system needs to address three core issues, i.e. the identification of assistance recipients, the determination of assistance standards, and the security of potential disadvantaged groups. The improvement of the system requires a path from both internal and external perspectives. Internally, it is essential to establish the criteria for evaluating poverty caused by illness based on catastrophic health expenditure at the household level. According to the principle of categorized assistance, different reimbursement gradients and applicable coverage should be set for various disadvantaged groups to improve the standards of medical assistance benefits. Externally, following the principle of "insurance first, followed by assistance", a well-ordered connection between basic medical insurance, major illness insurance, and medical assistance is established to form a sequential relief mechanism. This is achieved through the integration of information systems and a relatively unified responsible parties to improve the management efficiency. The establishment of a data-sharing mechanism for verifying the economic status of households within the social assistance system is crucial. Also we should create an early warning mechanism for poverty due to illness and a corresponding mechanism for handling warning results. Additionally, a relief mechanism for medical expenses beyond the policy should be established through project-based or product-based charitable assistance or commercial health insurance.