Health insurance needs to be expanded
By Shan Juan (China Daily)Updated: 2007-03-16 09:27
People will be able to choose from a wide range of medical insurance programs
when China reforms its public health system, central government officials
said.
Researchers and international organizations have long argued for
China to move away from a government monopoly of all health-related services.
In January,
Chen Wenhui, assistant chairman of the China Insurance Regulatory Commission (CIRC), said commercial
insurance services were a vital part of helping China build up "a multi-level
health care network with all its citizens insured".
At present,
according to figures from the CIRC, commercial health insurance covers only 10
percent of society's total medical costs, a far cry from its expected
target.
But there is growing optimism that comprehensive health cover
will contribute heavily to a healthier Chinese society.
"Commercial
health insurance will surely play a considerable role in the course of the
Chinese medical reform," Liu Yongfu, vice-minister of labor and social security,
said on the sidelines of the annual session of the National People's Congress
(NPC).
Presently, the government-sponsored medical care plan, which is
available primarily for urban residents, takes care of only 20 percent of the
total medical costs.
In other words, up to 70 percent of the nation's
medical bills could still be insured.
Government funding of the national
medical care, of some 1.5-2 trillion yuan ($195-260 billion) per year, is mainly
used to cover the most common illnesses.
The remaining portion, up to 6
trillion yuan ($780 billion), would be the area to be covered by various
insurance programs, whether based on collective arrangements or individual
purchases.
Such a medical funding scheme, according to Chen, would be an
ideal scenario to head off possible runaway medical bills, and give people
health security.
China commenced rebuilding its medical system in 2005,
after Beijing admitted previous attempts at reform were
unsuccessful. Many Chinese families have complained about spiralling health
costs.
But, there are plans to expand the "welfare umbrella" to help
ordinary Chinese people, improve the quality of medical services, and cap drug
prices and medical treatments.
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