The Chinese government has announced to complete the healthcare reforms by 2020 to provide better facilities to poor and cover a large population under healthcare insurance plans.
According to some media reports, the Chinese government is determined to complete the healthcare reforms by 2020. This government initiative will provide safe and affordable medical coverage to its over one billion citizens, as reported by REUTERS.
The government has decided to cover almost entire population under medical insurance and construct thousands of clinics and hospitals in the next three years. This is the first phase of 10-year plan to resurrect the ailing healthcare system.
The details of over $120 Billion worth first phase of revamp was released on April 7, 2009 by the State Council, China's cabinet. The plan will focus on the construction activities to make sure that every village will have a clinic and every county, at least a hospital by 2011. The subsidies given by the state for insurance premiums will provide basic coverage to 90% or above 1.3 Billion people in the country within three years.
Alongwith under-funded social security and educational systems, healthcare sector is a weak link in the Chinese social welfare system. In fact, sub-standard healthcare facilities drastically affect the domestic consumption and become a source of discontent.
Poor medical coverage and rising healthcare costs compel millions of families across the country to keep aside their savings if any of their family members falls ill, instead of spending.
This is one of the biggest worries of the Chinese government as it is trying to increase the domestic consumption to boost the economic growth that has been severely thrashed by the declining export orders to major markets of North America and Europe in wake of global financial crisis
Ruling Communist Party and the Chinese government are emphasizing on the blueprint with a big push from public relation, indicating the importance of reconstructing social safety net which was extensively dismantled in last 30 years during China's to shift to market economy.
According to a Research Analyst at RNCOS, "The reformation of healthcare system in China is very necessary for building stable and harmonious society. The reformation should be aimed at providing basic healthcare facilities as public services to poor people in the country. It requires more cooperation, funding and supervision from the government."
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