"The reform will introduce a system that enables individuals and the society to share medical charges at a reasonable level,'' Xu said as part of a working report to the local People's Congress. The report sums up economic development from January to July, development that Xu called "stable.''

Xu said that after making several revisions, the city would probably introduce the new medical insurance system by December.

Since the elderly population in Shanghai exceeds the country's average, the ratio of premiums paid by work units will be higher than what the central government requires.

"It is probable that the sum in a Shanghai individual's medical insurance contribution will be 14 per cent of a worker's salary,'' Xu said. This is 6 per cent higher than the amount required by the central government.

Of the 14 per cent, work units would contribute 12 per cent, and the individual would put in 2 per cent.

This amount can help the city collect enough to maintain the medical insurance Shanghai people had before the elderly population increased, Xu said.

The city may also lower the amount of insurance deposit money used for hospitalization reimbursements, meaning individuals would pay more of the costs.

Xu added that Shanghai would set up a special fund for people suffering serious or chronic diseases or for underprivileged people.

"Medical insurance will have important influence on people's lives and social stability. For those people in need, the government should find more ways, rather than relying only on social insurance deposits, to help them,'' Xu said.

(China Daily)