China Planning to Expand Medical Insurance for Critical Ailments
Published By : 04 Aug 2015 | Published By : QYRESEARCH
China is planning to expand its medical insurance to encompass all critical illness both for its urban as well as rural population before the year ends. The plans have been revealed by the cabinet on Sunday as the latest step taken to revamp the healthcare system that earlier faced widespread public discontent.
It was also revealed by the State Council that insurance will cover 50 per cent of the medical costs in a bid to effectively reduce the burden of increasing medical expenses. The information was revealed in a statement posted on the government’s website.
The China government led by President Xi Jinping has also promised access to affordable healthcare. Nearly 1.4 billion people living in China are complaining about the exorbitantly expensive healthcare services due to the unsatisfactory and low levels of the insurance coverage in the country.
According to reports cost incurred on the treatment of illnesses such as cancer and diabetes in China is so high that it can actually bankrupt households under the current system. Earlier this week, it was reported by the State Council that the government is planning to expand the health insurance facilities to effectively eradicate the problem of poverty triggered due to illness.
Almost 3 trillion yuan, which roughly estimates around US$480 billion was spent by China in healthcare reforms since 2009. Despite the investment of such staggering amount the healthcare system of the country is still struggling with the scarcity of doctors, fragmented retail market and drug distribution, and frequent attack on medical staffs by patients.
Economists observing the healthcare segment in China said that in order to improve the quality of the healthcare system, the Chinese government has to change a certain practices and boost domestic consumption. They also said that having a stronger safety net will encourage Chinese to save less and spend more.