The State Council Supports Commercial InsuranceInvolved into System of Medical and Elderly Care Service

Sincethe publication of the State Council’s No.10 national notice concerninginsurance industry, the executive meeting of the state council held on August 27made clear more detailed rules facilitating health and elderly care insurance.

Thedetailed rules demand the insurance fund spared from a proportion of urbanmedical insurance found and new rural cooperative fund; it also demands theconstruction of the urban and rural critical illness insurance system andincreases the proportion of medical expense reimbursement of the criticalillness patients. Competitive mechanism is asked to be introduced andcommercial insurance institutions are encouraged to participate in variousmedical insurance services.

In terms of elderly care, the executive meeting of the state council promisedto accelerate the construction of health care service system includingcomprehensive hospital, Chinese medicine hospital, recovery hospital, etc. Italso promised to build elderly care service system including nursing houses andrural elderly care facilities in order to serve the grass-roots better.

“For a better implementation of the newNo.10 national notice, detailed documents concerning facilitation of thecommercial health care service may be published recently.” an insider ofChinese Insurance Regulatory Commission said to the journalist of 21^stcentury Business Herald.　

Themain point in the meeting on August 27 was that government and market shouldwork together to deepen the medical system reform; let reform stimulate socialforce to develop commercial health insurance , making it a joint force withbasic medical insurance. At the same time, the government should considerexpanding employment and facilitate the economic restructuring and improve thelivelihood of the people.

Themeeting clarified 5 main points: firstly, urge commercial insuranceinstitutions all-round undertaking of urban and rural critical illnessinsurance; spare a proportion or quotation of urban medical insurance fund andnew rural cooperative fund as the insurance fund; build system of urban andrural critical illness insurance; increase the proportion of medical expensereimbursement of the critical illness.

Aperson concerned with Chinese Insurance Regulatory Commission claimed that someregions has begun to carry out the program mentioned above which will spreadall over China in the near future. “This program is very important to thedevelopment of health care insurance. If the promotion goes on smoothly, themarket space of health care insurance will remarkably enlarge within a veryshort time.”

Secondly,intensify government’s purchase service. The government will introducecompetitive mechanism and support commercial insurance institution toparticipate in various kinds of medical insurance services; encourage medicalinstitutions to become commercial insurance institution’s designated healthcare institutions and cut the unreasonable medical expense.

Interms of the product of commercial health care insurance, insurance companiesshould provide more insurance products for aged people and disabled people.Accelerate the development of practice insurance such as medical responsibilityinsurance and enlarge its coverage.

Themeeting also offered more space of policy support. For instance, the governmentshould improve business income tax policy which requires companies to pay forthe supplementary medical insurance premium for their staff; encourage socialcapital to build health care insurance companies; support commercial insuranceinstitutions to build new medical care institutions, communities for agedpeople and physical examination institutions. Meanwhile, the supervision willbe stricter.

Italso benefits a lot for insurance companies to build nursing houses andrecovery hospitals.

The meeting indicated clearly that in this year and nextyear, the facilitation of construction of health care service system such ascomprehensive hospital, Chinese medicine hospital and recovery hospital will bethe top priority; it will build elderly care service system like nursing housesand rural elderly care facilities; it will also build public sport and healthcare center to promote the extensive coverage of convenient exercisingfacilities in rural and urban area.