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The provincial government of central south China's Henan Province plans to allocate 400 million yuan (US$49.3 million) next year to improve its rural medical insurance system.

Officials attending the provincial rural medical insurance conference said the appropriate funds will be primarily used to reconstruct 800 clinics and health centers in Henan and double the government subsidies on medical insurance.

In 2006, the pilot counties and cities of rural medical insurance will grow from 25 to 64 in the province.

Nearly 40 million rural population will benefit from the medical insurance system, accounting for 57 percent of the province's total.

Henan started the rural medical insurance since 2003.

As of November, 2005, more than 20 million people have received medical compensation, with 8,492 people enjoyed compensation for more than 5,000 yuan (US$616.5).

(Xinhua News Agency December 27, 2005)