The government will phase out the approach of drug sales
sustaining the health service as part of healthcare reform, a top
official said yesterday.
The high cost of medicines has long been blamed for making
medical services unaffordable for common people and triggered
mounting complaints from the public.
"The reform will try to resolve the problem of relying on
profits from selling drugs to support medical institutions,"
Minister of Health Chen Zhu told a press conference organized by
the State Council Information Office.
It is the first time the top health official has talked about the
blueprint guiding China's health reform.
The State Council, the Cabinet, has set up a team of
representatives from 16 ministries to hammer out every detail of
the blueprint, whose release date was not announced by Chen.
So far, eight proposals from domestic and international research
and health organizations have been submitted to the
authorities.
The government will increase funding to the healthcare sector
and work out a proper pricing mechanism which better reflects the
value of medical services, Chen said.
Drug costs currently make up for 44 percent of total medical
expenditure, far higher than the global average of no more than 20
percent. Worse, hospitals rely heavily on user fees, which threaten
to turn patients into cash cows, experts warn.
Chen also revealed that the health authorities are working to
vaccinate people against 15 epidemics, up from seven now.
"National immunization projects will cover most of the epidemics
in the world," Chen said.
Rural medical insurance
Regarding the rural cooperative medical insurance system -
initiated in 2003 to provide basic medical care and so far covering
nearly 83 percent of the rural population or 720 million - Chen
forecast universal coverage by next year.
Under the program, each participant pays 10 yuan (US$1.3) a
year, while the central, provincial, municipal and county
governments provide another 40 yuan (US$5.2) to the fund.
When rural residents fall seriously ill, a proportion of
hospital expenses is covered from the pooled fund.
The rate of reimbursement varies according to illness and the
actual cost of medical expenses incurred. But many rural residents
still complain that the percentage of medical costs covered by the
insurance scheme is inadequate.
At present, the reimbursement rate for hospitalization is on
average 20 percent nationwide, official statistics suggest.
"As a new policy, the benefit level, we have to admit, is still
low. Gradually, with more funding support from the government, the
scheme will expand to cover outpatient costs," Chen said.
New health chief shines on debut
Health Minister Chen Zhu's debut appearance at a press
conference yesterday hosted by the State Council Information Office
on China's medical system ended on a high note - with applause for
the minister from the assembled reporters.
"Applause is rare," Yang Huayun, a veteran reporter with
Beijing News, said.
"What impressed me most was his gentle manner toward the
media."
Yang said a "no comment" approach by senior officials to
reporters was usual.
Throughout the two-hour press conference, Chen had a smile on
his face. He profusely thanked the press corps and said the media
was a government watchdog.
Chen's approach is typical of the new generation of high-ranking
officials who tend to be more media-savvy and candid, Yang
said.
Yang said he was also impressed with Chen's academic
background.
"He got his doctorate in France and speaks good English."
(China Daily September 6, 2007)