CHINA URBAN SCHEMES

 

HIUR schemes in Beijing

Targeted people: the total number of registered urban inhabitants is about 10 million in Beijing, of which 75% is currently covered under HI schemes for urban working people and pensioners, the remaining 25% is the targeting people under the new Beijing HIUR scheme.

Operational objective: the targeting people are divided into two groups for being insured. The first group to be covered in 2007 is consisted of children and the elderly with no pensions, accounting for 20 percent of the total urban population. The second to be covered in 2008 comprises the disabled and working-age persons with no HI cover, accounting for 5 percent (Wang, 2007).

Benefit package: it concentrates on hospitalisation and outpatient care of severe diseases. With regard to the reimbursement rate, it is set, for children, at 70% of insurable medical cost with a ceiling equal to 170,000 yuans per insured per annum, which is about 8.5 times the local average disposable income in 2006, and for the elderly, 60% with a maximum of 70.000 yuans payable per insured per annum, accounting for 2.5 times the local average disposable income in 2006 (calculation based on China Labour Statistical Year Book 2006; calculation by the author).

Financing: there are two sources of financing, i.e. contributions from the insured and subsidies from the Gov. The flat rates for the insured are 50 yuans and 300 yuans per insured per annum for children and the elderly respectively. These account for about 0.25% and 1.5% of the average annual disposable income per urban capita in 2006 (Ying Lijuan, 2007)). With regard to subsidy rates, they are 50 yuans and 1100 yuans per insured per annum for children and the elderly respectively. If the insured family is recipient of social assistance, the contributions will be exempted.

Cost as a percentage of Gov. revenue and of GDP: it is estimated that this scheme will cost the Government of Beijing Municipality 400 million yuans per annum, about 0.44% of its revenue in 2005. This implies that the total expenditure would amount to 800 million yuans per annum, about 0.116% of GDP that Beijing produced in 2005 (Calculation based on China Labour Statistical Year Book 2006).

(For more, see news.xinhuanet.com)