The Chinese healthcare sector is booming. Factors such as the increasing geriatric population, rising chronic patient population, and the accelerating disposable income levels are fueling the Chinese healthcare market. Furthermore, the China market is also attracting a lot of FDI, which is further fueling this market.
One of the sector in China that is witnessing growth is the medical insurance sector. Recently, the news that China will expand their critical illness insurance system to provide coverage for more rural and urban residents was released by the authorities. According to statistics, the coverage of the Chinese basic medical insurance system for rural and urban citizens exceeded the figure of 95 per cent in the last year, this reached over 1.3 billion people.
All the residents that are covered in the nation’s basic medical insurance system for rural and urban citizens will be protected against illness that are critical by end of 2015, the authorities mentioned in an official statement. Under the country’s critical illness insurance scheme, if a patient’s health bills for required treatments via the current basic medical insurance system reached a certain level then the patient was capable of receiving reimbursements due to the scheme.
In the year 2014, the insurance for critical illness supported around 1.15 million patients in the country and the total fund reserve for the program was able to reach around US$1.6 billion. In a recent meeting, the State Council requested market regulators to support random checks on firms in several sectors to support foster a healthy and fair business environment. According to the State Council, the ration for reimbursement should reach around 50 per cent in 2015 and also gradually increase in the future.
The meeting also stated that the development pattern of China’s agriculture should also be transcended and made more technology based and should be able to work with scale of economy along with safety.