China has decided to start the trial of an expanded basic health insurance from urban workers to all urban residents in the latest move to improve the country's health care system.

This year, the country will select one or two cities from certain provinces for the trial of the new basic health system for urban residents that covers major illnesses, according to a decision of a State Council meeting presided over by Premier Wen Jiabao.

The primary and middle school students, children and other unemployed urban residents who are now excluded from the basic insurance system could choose to be part of the initiative in the trial cities, according to the State Council.

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Currently, the government orders all firms to establish basic health insurance for their employees, with fees coming from both the employers and the employees.

That guarantees basic health services for urban workers in spite of the fact that some firms ignore the order.

However, the country lacks a program that covers those out of the workforce in the cities, including the children and primary and middle school students.

Reports often surfaced that a family was pushed into abject poverty after a member got a major illness, for example, cancer.

The trial is a major task in the country's health care reform and in the establishment of a basic health insurance system covering all residents in the urban and rural areas, the State Council meeting said.

The meeting asked the trial cities to set a reasonable fee level, based on local living standard, as well as a feasible compensation level.

The meeting also demanded strengthened supervision over the insurance funds, guaranteeing the safety of the money.

Medical care has become a major issue of concern in China since the country dismantled the cradle-to-grave social security system in the process of shifting to a market economy from a planned one.

Premier Wen Jiabao vowed to improve the health care system early March in his work report to the top legislature, the National People's Congress.

The country is pushing to set up a cooperative medical care system in its vast rural areas. Under the system, a participant pays some 10 yuan each year and will get some redemption in case of diseases. The central government has allocated some 4.27 billion yuan to the program, according to Wen's work report.