China took a big step on Tuesday, Jan. 12 to provide medical insurance for all.
A document issued by the State Council revealed that the central government proposed the merger of two medical insurance systems for rural and urban dwellers, according to Xinhua.
The country currently has three different medical insurance schemes: basic medical insurance for urban employees, the new rural cooperative medical scheme, and basic medical insurance for city residents that covers majorly the under-18 and the unemployed.
The two urban medical schemes are under the Ministry of Human Resources and Social Security, while the National Health and Family Planning Commission manages the rural program. The merger of the latter two programs may be the first move toward a united medical insurance system in China.
The State Council said that a new post-merger insurance will cover both rural and urban dwellers who are not covered under the urban employees' medical insurance, and could cover about 75 percent of inpatient medical fees. Compensation for outpatient fees will be increased slowly.
On the other hand, Sina English reported that all subscribers to the new insurance scheme would be subject to a unified standard of payment. The implication is that rural residents may be compelled to pay more than they used to do.
The reason behind the merger is to push forward medical reforms, ensure urban and rural residents' equal access to basic medical insurance, boost people's well-being, and promote social justice, according to the State Council document.
Local governments are charged with the responsibility of submitting respective insurance merger plans by the end of this year.