As a result of hard work, medical securitysystem covering urban and rural residents hasbeen established in Tianjin, meeting the goalthat every urban and rural resident should enjoybasic medical security.

The local urban worker’s basic medical insurancesystem was put into effect in 2001. Three securityplatforms of combining of individuals’ accountsand society’s planning as a whole, medical costsocial pool for major diseases and medical assistancehave been set up, which are expected tobetter solve the medical insurance problems ofdifferent social groups. Till the end of June, 2008,the population covered by the medical insurancesystem had reached 3.88 million.

In 2003, Tianjin began to start a new rural cooperativemedical system as a pilot program andwidely promoted it in 2006. At present, the systemhas covered 12 districts and counties, 3,871administrative villages, with 3.53 million peoplequalified for the insurance and the participatingrate over 90 percent. The rural medical care situationhas significantly improved with the farmersenjoying basic medical security.

While improving the medical security system,Tianjin has not only made a comprehensiveplan on urban and rural medical insuranceconstruction, but also adhered to one importantprinciple that the system should be affordableand accessible to the people, especially tothe disadvantaged.

In order to reduce the financial burden on individualpatients, Tianjin improves medical itsinsurance benefits. Eight alleviating policieshave taken effect, upgrading the refund percentagefor the retired staff over 70 and working staffover 45 and lifting some of the pre-conditions.The population benefiting from these policieshas reached 1.39 million and more than RMB 40million yuan is saved for the insured annually.

It is a common issue that enterprises havingfinancial difficulty are not able to participate ininsurance. In 2004, Tianjin took the lead to carryout medical cost social pool for major diseasesfor staff working in these enterprises. Judgingfrom actual situation, the government will offeraccording subsidies to establish the program forthe retired staff of relevant enterprises.

The two programs have met the medical treatmentrequirements concerning major diseasesfor 53,000 working staff and 250,000 retiredstaff of enterprises in difficulty.

In 2005, staff retired before the establishmentof medical security program, retired staff frombankrupt enterprises and retired people governedby civil administration began to be coveredby the medical security system, solvingthe medical-care issue for 30,000 people.

During the establishment of the medical securitysystem, Tianjin has taken the advantage ofpublic finance to ensure the security of the disadvantagedgroups. The government not onlyprovides subsidies to retired staff from difficultenterprises, but also to the groups having difficultyparticipating in insurance, including seniorunemployed people who are reemployedin positions of public service, unemployedpeople rejoining the work force, laid-off staff,the disabled, single mothers and other groups.

As stipulated by Tianjin’s basic medical insurancepolicy for urban and rural residents, thegovernment will offer full subsidies to severelydisabled people, people from poverty-strickenfamilies on subsistence allowance and peopleover 60 years old and from low-income families.Individuals don’t need to pay any fees.Students and children who have participatedin insurance program will be further covered byaccident injury insurance.

On January 1, 2008, Tianjin’s basic medicalinsurance system for urban residents beganto take effect. Students, children, and unemployedresidents from urban areas are coveredby social medical cost pool for major diseases.So far, there are 623,000 people participatingin this program and 31,000 people enjoyingthe refunding. The medical cost burden is effectivelylifted from senior people, children andthe disabled, who are not capable of working.This program is warmly welcome by Tianjinresidents.