Center

Farmers benefit from medicare

By Xie Chuanjiao (China Daily)
Updated: 2006-07-24 08:44

A year ago Wang Hongwei was hesitant about handing over 10 yuan for a trial medical insurance system. But now, as the 56-year-old farmer from Shandong Province recovers from heart surgery, he knows he made the right decision.

For 10 yuan (US$1.25), the local government reimbursed 65% of his bill, paying 26,000 yuan (US$3,250). Without the insurance, Wang would have used up almost all of his life savings. 

"I never expected I could get so much money from the government. It really is a big help for me," he said.

Wang's story gives hope to hundreds of millions of rural residents across China struggling to pay high medical bills.

The insurance system, called the "new rural co-operative medical care system," was launched by the central government in 2003. Still on a trial basis, the system is currently being implemented in 671 counties in the country, home to a total of 177 million rural residents.

With the new policy, a farmer puts 10 yuan a year into his personal healthcare account and the government injects another 40 yuan (US$5). The government will then pay up to 65 per cent of his medical charges a year.

The highest payment can be up to 30,000 yuan ((US$3,750) in Laishan District in Yantai, where Wang comes from.

"With the insurance, I feel more willing to see doctors and know more about my health. My family and I feel much more secure than before," another villager Chu Zhongcheng told China Daily.

"China has 900 million rural people, and more than 700 million remain in the countryside and lack affordable healthcare. The system will guarantee a fundamental healthcare system for these people," Tian Mingbao, vice-mayor of Yantai, told China Daily.

The city has eight counties that have tested the new system. To date 84 per cent of residents, approximately 2.5 million, have participated.

According to the vice-mayor, this year the city government has allocated more than 88 million yuan (US$11 million) to support the system.