The city of Wugang in Henan Province has become the first in the
country to establish a basic medical security system for all of its
urban and rural residents.
Some 30,000 residents working in the city's government
institutions or enterprises can have their medical expenses
reimbursed. If they are hospitalized, 75 percent of the expenses
above 500 yuan (US$62) can be reimbursed from the city's medical
insurance account. Their employer pays 6 percent and they pay 2
percent of the medical insurance, while the remaining 92 percent is
from local coffers.
For just 10 yuan (US$1.20) a year, rural residents, laid-off
workers and the unemployed can have an annual subsidy of 12 yuan
(US$1.50) for clinical visits. If hospitalized, they can receive
extra financial assistance, which can be as high as 10,000 yuan
(US$1,230) a year for serious diseases.
With an estimated annual revenue of 440 million yuan (US$55
million) this year, this city has allocated 10 million yuan (US$1.2
million) to launch the medical security system.
Insurance coverage for rural residents, laid-off workers and the
unemployed is very low, compared with that for their urban employed
counterparts. But the city aims to gradually improve this situation
over the next couple of years.
Such a move by the government of a county-level city of 320,000
has set a good example, as costly medical expenses become a heavy
burden for many low-income families and even reduced some to
destitution.
What this city government has done sends a message that it is
not impossible for governments at various levels to establish a
medical security system to guarantee at least basic clinical
services for their residents.
Instances of some local governments spending millions on
splendid squares or palatial office buildings also suggest that it
is not a lack of money but a lack of concern for the well-being of
their residents that prevents other localities from introducing
similar schemes.
The city of Wugang ranks the 20th among the province's 108
county-level cities. At least the 19 cities that have a higher
financial revenue can do the same as Wugang. But it is so far the
only place to have taken such a step.
Needless to say, it is a question of attitude rather than a
financial issue.
Serving the needs of their residents should be a top priority
for governments at different levels in order to meet the central
government's goal of building a harmonious society.
This move by the city of Wugang has met that requirement. If
more cities could follow the example of Wugang, we would be able to
get closer to that goal in a more speedy fashion.
(China Daily July 21, 2006)