Reform plan for governments’ fiscal role in medical services

The State Council on Aug 13 released a circular to specify the fiscal duties of central and regional authorities in medical services, as part of more structural reform.

According to the circular, the duty reallocation touches upon four aspects, which are: the public health sector, medical insurance, family planning, and overall capacity building.

Public health sector

The public health sector consists of basic and major public health services. The former includes health education, vaccination, and health management for key communities.

The central and regional governments will jointly bear the spending on basic public health services. All provincial regions are classified into five grades, of which the highest contribution by the central government is 80 percent, while the lowest is 10 percent.

As for major medical services, the central government will be in full charge of the spending. That will include planned regular vaccinations, prevention and control of grave epidemics, HIV, and tuberculosis.

Medical insurance

There are two major aspects of medical insurance － basic medical insurance subsidies for urban and rural residents and medical assistance.

The central and regional governments will work together in providing financial subsidies for basic medical insurance as well as medical assistance. Medical assistance will be given through transfer payments by the central government based on the needs and financial situation of regional governments.

Family planning

Both central and regional governments will take care of family planning subsidies for rural families, in a bid to better aid them in improving their living conditions and their livelihood.

Capacity building

A slew of improvements are planned in five major aspects － reform and development of medical institutions, quality of health and hygiene work, administrative work on health and hygiene, medical insurance coverage and capabilities, and development of traditional Chinese medicine.

Central and local governments will take care of financial subsidies for unified strategic projects promoting national health and hygiene work, as well as the development of traditional Chinese medicine.

In addition, local governments will also bear the cost for their own projects for regional health capacity building.