New program 'to benefit commercial insurers'

Commercial insurers are expected to benefit from a major medical insurance program that will cover almost all residents in China by the end of this year, despite restrictions on their profit margins.

Profit margins of the insurers for the program will be controlled at a reasonable level so the medical fund can be "effectively utilized and benefit the residents", Liang Wannian, deputy chief for the Medical Reform Office of the State Council, said on Friday.

The program, currently in the pilot stage in many areas of China, will cover all subscribers to the basic medical insurance system in the country - more than 95 percent of the total population - by the end of this year.