About 3 million migrant workers are to benefit from a newly
approved regulation that will give them access to affordable
medical care in Shenzhen.
The Interim Measure of Shenzhen on Migrant Workers' Medical
Insurance has been passed in a government standing meeting. It is
China's first medical insurance regulation specially designed for
migrant workers to solve the problem of rising medical costs for
the low-income group.
It follows a successful pilot that mainly targeted manufacturing
companies in four major areas of the booming southern city, which
are inhabited by a large group of migrant workers.
The pilot project was launched in March last year and the new
regulation means it has been extended to all companies with
contracted migrant workers in the city.
According to the regulation, firms are required to pay 8 yuan
(US$1) a month per worker to the special insurance fund, while
workers themselves contribute 4 yuan (US$0.5) a month.
Half of the sum goes into an account for outpatient services,
and 5 yuan (US$0.6) for hospitalization. The remaining 1 yuan will
be used flexibly.
The fund will pay nearly 80 percent of the charges for
outpatient services and 63 percent of hospitalization fees. It will
pay up to 90 yuan (US$11.2) for a single outpatient service.
The government will subsidize the fund in emergencies, such as
the outbreak of certain epidemics, severe natural disaster or
policy adjustment, according to the new regulation.
Statistics from the city's labor and social welfare authority
showed that the fund has worked well since the launch of the
pilot.
Nearly 4,900 companies had joined the scheme by the end of last
year and at least 1.2 million migrant workers were covered.
The fund recorded revenue of 86.1 million yuan (US$10.7
million), and paid out 33.6 million yuan (US$4.2 million). About 48
percent of the account for outpatient services was used by the end
of 2005, while only 5.23 percent of the fund for hospitalization
had to be paid out.
The scheme has been welcomed by both workers and companies.
Wu Feng, a security guard at Fuqun Electronic, who is already
covered by the scheme, said he spent only 5 yuan (40 US cents) when
he went to see a doctor about a cold recently. "The scheme could
save at least 100 yuan (US$12.5) for me each year," he said. He
earns 800-1,000 yuan (US$100-125) a month.
Huang Baoquan, the welfare director of a button manufacturing
company, said the firm had to previously pay 25.5 yuan (US$3.2) for
an employee's medical insurance, but now only 8 yuan (US$1) was
needed for the insurance fund.
(China Daily May 16, 2006)