It is estimated that the reform will benefit 80 million citizens.

China has started an experimental reform in the section in some provinces since 1994, altogether 43 million people have been enjoying the new medical care system.

The medical insurance, whose premium will be co-submitted by the individuals and their working units, will pay the medical cost when they need a large amount of money for medical treatments.

The present medical system, which has been under the sole responsibility of the working units and the local governments, has been a great financial burden.

Besides, bankruptcy of large and medium-sized State-owned enterprises has resulted in the actual non-coverage of medical costs for their employees.

The new system, with insurance companies as the permanent payer for the medical costs, will solve the financial difficulties for the low-income and laid-off workers when they have a serious illnesses. Wang Dongjin, Minister of Labor and Social Security, said all those cities yet to implement the new medical care policy were required to work out an implementation draft this month, and all the needed policies and regulations by the first half of this year.

Only a few cities are permitted to start the reform in the third quarter of this year.

The initial statistics from the 25 provinces and regions already under test operations show that they collected a total of 15.8 billion yuan (about US$1.896 billion), while they paid 12.2 billion yuan, with 10 percent left.

Besides, 26 large and medium-sized cities such as Beijing, Guangzhou and Dalian has set up an insurance system against injury at work, with 4,200 workers now under the coverage. And a reproduction insurance has now benefited 30 million employees.

(21dnn 03/06/2001)