Guangzhou to rise personal payment for medical insurance

The government of Guangzhou, Guangdong province, is planning to increase the personal payment for medical insurance of urban residents by 50 percent to 108 percent to meet a shortfall in the fund.

Minors and school students, for example, will pay 120 yuan ($18.8) a year each for their medical insurance, up from 80 yuan. The elderly will pay 1,000 yuan a year each, up from 500 yuan.

The payment by the government for residents' medical insurance and refund for people's medical spending will also increase.

The Guangzhou bureau of human resources and social security is soliciting public opinions for the adjustments.

Since the launch of the medical insurance of urban residents in 2008, 2.58 million people in Guangzhou have registered for the insurance but only 1.38 million have paid for their insurance, according to the bureau.

This has led to a yearly shortfall of 197 million yuan in the medical insurance fund, and spending by insured people on medical treatment is expected to continue to increase.

The adjustment is expected to help balance the fund account.

A survey showed that more than 90 percent of insured residents can afford the increase in personal payment, with low-income people and seriously disabled people having their shares covered by the medical aid fund, according to the bureau.