The Beijing municipal government has decided to introduce a medical insurance system for public servants, employees of state institutions, factory workers and self-employed personnel as of April 1.
The medical insurance will pay for medical costs when employees need a large amount of money for medical treatment. Premium will be co-submitted by individuals and their working units.
The new system, with insurance companies as the permanent payer for medical costs, will help solve financial difficulties for low-income and laid-off workers when they contract serious diseases.
The present medical system, which has been under the sole responsibility of the working units and the local governments, has been a great financial burden.
Besides, bankruptcy of large and medium-sized state-owned enterprises has resulted in non-coverage of medical costs for their employees.
China is soon to start a nationwide reform of the present medicare system this year, aiming at implementing a medical insurance policy in over 90 percent of cities.