Based on the statistical data of every city in shandong province, using SPSS17.0 factor analysis, the results showed that 17 cities in shandong province of urban and rural residents basic medical insurance level there are evident differences, with the population around the city and the medical security level, closely related to social and economic development situation, and on this basis, basic medical insurance for urban and rural residents in shandong province proposed to speed up the development of regional economic development, improve the ability of residents pay cost, account support of health care service of every city, combining with the regional development of perfect system design proposal.