China's Ministry of Health (MOH) is researching reforms to the medical care system in conjunction with other ministries, said a MOH official. The MOH had earlier promised to hammer out Medicare system reforms in 2007.

The government will pay for the salaries of Medicare staff and will increase investment in medical institutions in rural areas and urban communities, so as to reduce medical costs borne by patients, said Gao. Gao said the government-funded Medicare system aims to provide equal medical care for both rural and urban residents, and thus narrow regional differences.

From January to September last year, 140 million farmers benefited from a rural Medicare system. Under the system, farmers, local and central government each chip in 10 yuan per year per person to a medical fund. Farmers who contribute to the scheme can then get a certain proportion of their medical expenses refunded, according to Gao.

According to a report by the Chinese Academy of Social Sciences (CASS), medical costs are the biggest burden facing Chinese people. The report shows that 11.8 percent of household expenditure goes on health care, higher than communication and education. Another national survey on medical services, conducted in 2006, showed 49 percent of Chinese refuse to see a doctor when ill and 30 percent refuse to be hospitalized due to the high cost.

"A drug system that guarantees safety and low prices, and a hospital management system which stresses public service instead of commercial profit are essential to improving health in China and the development of China's Medicare system," Gao said.

Source:未知