The National Development and Reform Commission (NDRC) has
proposed the allocation of an additional 2.7 billion yuan (US$35.67
million) to improve the country's rural medical care system this
year, on top of the government's 9.4 billion yuan pledge back in
June.
The funds would be used to accelerate the development of the
rural health care system and improve health care for China's rural
population, according to a policy drawn up by the NDRC Social
Development Department.
Observers say the proposal, which requires the approval of the
State Council, is a recognition that the current investment is
still insufficient in ensuring all rural residents are covered by
the rural cooperative medical system.
Under the scheme, a participant pays an average of 10 yuan a
year, while the government contributes another 40 yuan. The
participant is then entitled to reimbursements as high as 65
percent of their total medical expenses up to 30,000 yuan.
However, reimbursement rates depend on the financial situations
of local governments. Some cash-strapped western provinces are only
required to reimburse patients 10 percent of their medical costs
even though the participants in the scheme are paying as much as
other people in richer provinces.
Out of 1.3 billion Chinese people, only 330 million were covered
by medical insurance according to Ministry of Health (MOH)
statistics in 2005.
The MOH reported in 2004 that 156 million rural people were
participating in the new rural cooperative medical care
network.
Fast forward to March this year and the NDRC claimed that 2,319
counties, or 81.03 percent of China's total, and 85.7 percent of
rural Chinese were under the cooperative umbrella.
From 1965 to 1976 when the Chinese economy was strictly
centralized, the national medical care system covered all urban and
rural residents for life. The economic restructuring since the late
1970s changed the cover-all mechanism and left many people,
particularly the urban poor and rural people, with no
assistance.
Rising medical costs have become a major concern in China and
upset many rural residents. In order to tackle complaints about
limited access to medicine, the government began to increase
funding for health care in rural areas and launched the rural
cooperative medical care system in 2003 after the outbreak of
severe acute respiratory syndrome (SARS).
In the first quarter of 2007, the NDRC said about 5.2 billion
yuan was reimbursed to 74 million rural people.
The NDRC said efforts would also be made to strengthen the urban
community health service this year. According to the 11th five-year
(2006-2010) national health development outline, the government
will supply every 30,000 to 100,000 urbanites with one community
health service center. About 5,000 community health service centers
and 18,000 smaller stations have been set up so far.
"The framework of a community health service system has been
molded," said Ministry of Health official Jin Shengguo.
The government is expected to release its final plan on medical
reform later this year, China Business News reported.
(Xinhua News Agency August 17, 2007)