China releases new medical system reform plan

China has outlined a new medical form scheme, aimed at providing basic universal medical care.

Medical form aims at providing basic universal medical care.

China has released a new medical system reform plan this week. According to the report from the Ministry of Health delivered to the 31st session of the Standing Committee of the National People's Congress (NPC), the government should play a leading role in providing medicare and public health services.

Government funding has, for years, only accounted for about 17 percent of the expenditure of the health sector. Health Minister Chen Zhu says, both the central and local governments should "significantly" increase input into the health sector. Additional funds will mainly be used to provide medicare in rural areas and urban communities to reduce costs borne by patients.

The government, society and individuals will split the cost of basic medicare. However, specialized medical services should be covered by patients or through commercial health insurance.

There are still 400 million people in China who are not covered by any form of medicare system. The Ministry has promised in the report to set up the framework of a basic medicare network by 2010, reducing the widening gap of medical services among regions. By 2020, China will establish a basic medicare network for the whole population.

China started medical system reform in 1992, to abolish a system under which governments covered more than 90 percent of medical expenses. But since then, medical costs have soared, and the country's public medical institutions have been operating profits from medical services and drug prescriptions. The profit-driven management has imposed "heavy burdens" on patients, and led to a waste of resources.

The Ministry of Health promises, the country will gradually reduce hospitals' involvement with drug sales to cut drug prices. China will set up an independent system on drug production, procurement and distribution, which will be on a list drawn up by the central government later.