The Ministry of Labor and Social Security Thursday released an updated catalogue of medicines provided for patients covered by medical and workers’ compensation insurance.

A total of 823 traditional Chinese medicines were included in the long-awaited list, as well as 1,031 Western-style pharmaceuticals.

Vice Minister of Labor and Social Security Wang Dongjin said at a Thursday press conference that the updated list will give patients with more affordable choices.

The list was compiled after conducting an intensive three-month feasibility study with more than 1,000 respected doctors and researchers.

The government released its first catalogue of medications for medicare insurance in 2000. It listed 415 Chinese and 725 Western-style medicines.

Wang said the prices of drugs, which have aroused many complaints from consumers, will be decided after consulting with the National Development and Reform Commission, which is authorized by the State Council to decide prices of basic medicines covered by medical insurance.

“Overall, we aim to make the medicines affordable,” said Wang.

The average American spends US$5,000 on medical care annually, while the average Chinese spends just over US$200. However, per capita GDP in the US was an estimated US$37,800 in 2003; in the same year, the figure topped US$1,000 for the first time in China.

Prices of nearly 1,000 medicines have already been cut since 2001, saving consumers 30 billion yuan (US$3.6 billion), according to the National Development and Reform Commission.

But Vice Minister of Health Gao Qiang said that there is still plenty of room to bring drug prices down, by both government action and market forces.

An estimated 118.5 million Chinese had received benefits from a basic medical insurance network by the end of August, and 56.9 million were covered by workers’ compensation insurance.

“But the health network is incomplete and is especially fragile in China’s rural areas,” said Yao Hong, director of the health ministry’s Department of Medical Insurance.

In China’s rural areas, there are about 30 million people living in poverty and 60 million living close to the poverty line.

About 90 percent of farmers must pay medical expenses out of pocket, compared to 60 percent of urban dwellers, while the average farming income is approximately one-third that of urban residents. As a result, many farmers are unable to afford medical treatment.

The central government is determined to set up a system to offer health care to all farmers by 2010.

(China Daily September 17, 2004)