China further regulates use of medical insurance funds

BEIJING -- Premier Li Keqiang has signed a State Council decree unveiling a regulation on the supervision and management of China's medical insurance funds.

The regulation applies to medical insurance funds including the basic medical insurance fund, maternity insurance fund, medical assistance fund and more.

The regulation clarifies the responsibilities of the parties involved in the use of funds and strengthens the punishment for illegal acts.

The use of medical insurance funds should focus on people's health and follow the principles of legality, safety, openness and convenience, said the regulation.

The supervision and management of medical insurance funds shall combine government oversight, public supervision, industry self-discipline and individual trustworthiness, the regulation noted.

The regulation encourages and supports news media to promote the laws, regulations and knowledge of medical insurance and monitor public opinion concerning the use of the funds.

The regulation was passed in December and will take effect on May 1.