Children of expatriates and residents of Hong Kong, Macao and Taiwan with work permits and who have joined the city's medical insurance scheme will have their hospitalization costs covered by a government-run insurance scheme.

Each child will receive up to 200,000 yuan (US$26,316) a year in cover to pay for any treatment when the scheme takes effect Sept. 1.

The premium for each child has been fixed at 12.5 yuan per month or 150 yuan a year and the city government will subsidize half the premium, the highest proportion in the country.

The insurance applies to all children under 18 years old who are holders of Shenzhen permanent residence permit or hukou, and those migrant children studying in Shenzhen who have at least one parent covered by the city's social insurance scheme as well as the children of expatriates who have joined the city's medical insurance scheme.

The insurance scheme is expected to cover on average about 80 percent of a child's medical fees. When treatment fees surpass 10,000 yuan, the insurance will cover 90 percent of the amount.

Yuan Jianyong, director general of the social security fund management bureau, said on a call-in program on Shenzhen Radio that the scheme will cover 1 million children in the city, including 300,000 children of migrant workers.

Parents of children who are under 3 can apply at subdistrict government offices, according to Yuan.

"The insurance is definitely good news for foreigners who have children studying at Shenzhen schools, because the premium is very low and the benefit is potentially very high," said Guillermo G Diaz-Ambrona, a Spanish resident who has his own company in Futian District. Diaz-Ambrona has four children, two at kindergarten and two at primary school in Nanshan District.

"I am very interested in the insurance scheme, but I need more details," he said.

Maynard F. Yutyzy, supervisor of Quality Schools International in China, said he would join the scheme if his children qualify.

"I am very interested in the program, though I have already bought insurance for my children from a U.S. company," he said.

"So far I haven't received any information," said Yutyzy, who has three adopted children, including a 10-year-old Chinese girl who is studying at Yucai No. 3 Primary School.

(Shenzhen Daily August 28, 2007)