Medical fund being bilked, say auditors

BEIJING - With the New Rural Cooperative Medical Care System continuing to extend its coverage to more people and pay out more for services, the nation's top audit body said on Wednesday that abuses of the massive insurance scheme and instances of graft are also growing.

In its latest report, the National Audit Office (NAO) said five counties and districts had misappropriated 27.4 million yuan ($4 million) from rural medical funds and used the money for other things, including pension payments.

The NAO's analysis of the system also found that institutions operating it in six counties and districts had fabricated 4,925 insurance policies to gain 373,000 yuan from local governments.