(Xinhua)
Updated: 2007-08-16 20:37

The National Development and Reform Commission (NDRC) has proposed the allocation of an additional 2.7 billion yuan (US$35.67 million) to improve the country's rural medical care system this year, on top of the government's pledge back in June to invest 9.4 billion yuan in the system this year.

The funds would be used to accelerate the development of the rural health care system and improve health care for China's rural population, according to a policy drawn up by the NDRC Social Development Department.

Observers say the proposal, which requires the approval of the State Council, is a recognition that the 9.1-billion investment is still insufficient in ensuring all rural residents are covered by the rural cooperative medical system.

Under the scheme, a participant pays an average of 10 yuan a year, while the government contributes another 40 yuan. The participant is then entitled to reimbursements as high as 65 percent of their total medical expenses up to 30,000 yuan.

However, reimbursement rates depend on the financial situations of local governments. Some cash-strapped western provinces are only required to reimburse patients 10 percent of their medical costs even though the participants in the scheme are paying as much as other people in richer provinces.

Out of 1.3 billion Chinese people, only 330 million were covered by medical insurance according to Ministry of Health (MOH) statistics in 2005.

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