An experimental project has started in Dongying city, east China's Shandong Province, to improve the health conditions of farmers by setting up a new medical insurance system in a cooperative way to help eliminate poverty arising from diseases.

With an investment of 70 million yuan (8.46 million US dollars),the project will benefit 1.2 million farmers in Dongying.

According to the project, every farmer will receive a subsidy every year, payment of which is to be divided between the municipal government, the town or village and the farmer.

A fund of 20 million yuan (2.4 million US dollars) was also established to cover the high medical cost of farmers in treating serious diseases and hospitalization. Expenses may be reimbursed at 50 percent for 1,000 yuan (120.9 US dollars) of medical costs, 70 percent for 5,000 yuan (604.6 US dollars) and 90 percent for 10thousand yuan (1,200 US dollars). In addition, each farmer is entitled to a free health checkup once a year.

Dongying plans to have a total of 33 new or reformed clinics inthe countryside, each equipped with an ambulance, as well as 200 health service stations, one for every 5,000 people.

(Xinhua News Agency January 13, 2003)