Shenzhen's medical insurance scheme will cover more people after a new rule takes effect March 1, a senior government official said Thursday.

Yuan Jianyong, director general of the municipal social insurance fund management bureau, speaking at a press conference Thursday, said the new regulation will ensure more coverage for the insured, especially migrant workers.

The move will cost the city government 500 million yuan (US$69.84 million) more each year, Yuan said.

Under the regulation, the city's medical insurance scheme will allow retirees, who are moving to the city to join their children holding hukou, to buy into the city's medical insurance scheme.

Also, payment ceilings set for the insured who have paid premiums for six consecutive years will be canceled. The current regulation has a cap of 200,000 yuan for the insured who have paid premiums for three consecutive years.

Parents will be allowed to pay outpatient treatment fees for their children who are also covered by the city's medical insurance scheme, under certain conditions.

Retirees who have joined the city's medical insurance scheme will get a one-off subsidy of 500 yuan starting March 1 and receive 20 yuan every month afterwards.

The city will also encourage more migrant workers to join the scheme by providing incentives.

The revised rule is in line with a guideline put forward by the State Council last year to establish a medical insurance system, which covers all rural and urban residents.

(Shenzhen Daily February 22, 2008)