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A capital example

(China Daily)
Updated: 2008-06-18 07:36

Medical insurance does make a difference when people who have just a little bit more than enough to make ends meet contract a serious disease.

That explains why the central government initiated the scheme of healthcare security for children and the unemployed in 79 cities on a trial basis in July last year, with the goal of extending basic health security for serious diseases to all residents nationwide by 2010.

Beijing's move announced yesterday to provide such insurance for its 470,000 unemployed starting from next month will make the capital the first locality in the country to realize the goal two years ahead of schedule.

It is not easy for a country with the world's largest population of 1.3 billion to create a healthcare security net to cover all its residents. The rapid economic growth in the past decades and the accumulation of public funds have made it possible for the central government to do so. And it is one of the ways the majority of people can enjoy the benefit of economic progress.

Yet, it is still impossible for the government finance to cover all the expenses for the insurance, and individuals must pay toward their own accumulative fund. But the government will pay for the poor and seriously-disabled residents and even shoulder a large share of the expenses for the disabled residents.

Beijing has done a good job in following the people-first principle by taking into consideration the difficulties of disadvantaged residents in designing their scheme.

The people who receive minimum living allowances or financial aid from the government and those disabled ones whose degree of disability is very serious have their entire expenses for accumulative fund covered by the municipal government finance.

This insurance will cover 60 percent of medical expenses and as much as 70,000 yuan ($10,140) at most a year once a resident covered in this scheme is sick with a serious disease. This will mean a great relief to this disadvantaged social group, and will effectively prevent residents from being made bankrupt by large medical bills.

Beijing has set a good example for other localities, which are expected to launch similar schemes in the coming two years to finally put in place their complete healthcare security nets covering all residents.

(China Daily 06/18/2008 page8)