China's Healthcare Reform Is Making Progress

Q1: Can you give us more background on the Medical reform?

A1: First, let’s take a look at China’s health care system. The Ministry of Health oversees the health services system under the State Council. In general, China’s healthcare reform targets include the expansion of basic health insurance coverage, perfecting the essential medicine system, and improving community-level clinics and public hospitals.

Let’s talk more about the expansion of basic health insurance coverage. Rural residents have long been neglected by the national healthcare system. In 2005, The New Rural Co-operative Medical Care System was activated in order to overhaul the system by making healthcare more affordable for rural residents. Under the new system, the annual cost of medical coverage is 50 yuan (US$7) per person.

Of that 50 yuan, 20 yuan is paid in by the central government, 20 by the provincial government and 10 yuan by the patient him or herself. Therefore, if patients go to a small hospital or clinic in their local town, the system will cover roughly 70-80% of their bill. This is considered to be a major step forward in China’s healthcare reform.

Q2: What other progress has been made in recent years?

A2: According to a new report published last month by JP Morgan on China’s Healthcare Reform, over 850 billion yuan has been dedicated to reform by the central and local governments. WHO also has acknowledged China’s medical reform, saying it gives "priority to people’s needs."

Last month, State Council announced that it will raise government subsidies for health insurance offered to farmers to more than 360 yuan by 2015. This represents an 80-percent increase from before.

Additionally, Health Minister Chen Zhu said on Monday that China will launch a healthcare scheme to cover migrant workers’ medical insurance when they seek medical treatment in places other than their hometown. These are some of the recent movements in nation-wide healthcare reform.