The paper analyzes some of the major causes of the current confusion in medical service prices. These include: ①irrationality of the mechanism of medical service pricing; ②lag of the management of medical service prices; ③irrationality and limitations of the distribution system in hospitals; and ④confusion resulting from the traditional medical security system of free medical care. The countermeasures put forward to deal with the confusion include: ①establishing a rational pricing mechanism; ②strengthening the supervision and management of medical service prices; and ③further speeding up relevant medical systems.