A new survey released on Wednesday said medical expenses are increasing faster than the average income in China.

"In the past five years, the annual income of the urban and rural residents rose by 8.9 percent and 2.4 percent respectively, while the medical expenses in urban and rural areas rose by 13.5 percent and 11.8 percent," said the national health services survey conducted by the Chinese Health Ministry.

"Medical and health expenses have become the third-largest family expense after food and education," it said.

According to the survey, the average expenditure for outpatient visits of urban residents was 219 yuan (US$26.5), and average spending for inpatient services was 7,606 yuan in 2003, up 85 percent and 88 percent respectively compared to 1998.

"The average spending for one hospital admission is equivalent to the average annual income of a rural or urban resident," the survey said.

The survey said about 50.4 percent of urban residents and more than 80 percent of rural residents do not have any kind of medical insurance.

The Health Ministry said the survey was conducted during September and October of 2003, sampling 57,000 households.

(Xinhua News Agency December 3, 2004)