Chinese government announces health care reform

China's government is to institute a major reform of the country's health care system by 2020, bringing much-needed health insurance to  rural workers.

The 850.0 billion-renminbi ($124.4 billion), three-year first stage of  the scheme will kick off with allocations of basic medical insurance  being offered to vulnerable urban residents during this year, with  subsidies provided by fiscal authorities to be increased to 120 renminbi  per person by 2010. The government hopes to increase coverage to 90% by  2011.

During the three-year period, more rural clinics and hospitals will also  be constructed and incentives will be offered to increase the number of  medical staff in these regions. In addition, the authorities have plans  to fully computerize the health care system, including such areas as  adverse-event reporting and drug information.