Govt plans major health insurance overhaul for residents

China plans to increase the annual per capita government subsidy for resident enrolled in the nation's basic healthcare insurance by 30 yuan ($4.7) to reach 670 yuan this year, according to a circular released on Monday.

Meanwhile, the annual per capita amount of individual contributions will rise by 20 yuan to 400 yuan, said the notice jointly released by the National Healthcare Security Administration, the Ministry of Finance and the State Taxation Administration.

"It was the first time since 2016 that the increase in personal contribution is lower than that of financial subsidy," said the National Healthcare Security Administration in a statement explaining the circular.

As the country's life expectancy has been climbing continuously and healthcare spending is rising, the administration said that increasing insurance premium is a necessary measure to improve services and guarantee smooth function of the nation's insurance system.

The circular also proposes a number of new measures or goals, such as covering expenses of prenatal tests as outpatient expenses, including more rural clinics in the insurance program, ensuring the enrollment rate of low-income rural residents and people who have been lifted out of impoverishment to maintain at or above 99 percent and offering incentives for people who participate in the program for consecutive years.