Healthcare in China

During the initial phases of the opening-up of the Chinese economy, the overriding objective was to raise output and incomes. Economic restructuring undermined the health care system, which became increasingly privately financed, though remaining largely publicly-provided. While the population’s health status was improving, a rising number of people were priced out of treatment or fell into poverty because of health care costs. The relative price of health care rose markedly until 2000, pushing up the share of overall health care expenditure in GDP (Gross Domestic Product which in 2008 was around 4½ per cent). Hence, a marked change in the equity and efficiency of the health care system was needed. In recent years, several reforms have been initiated, including a number of major changes that have been launched in 2009, introducing two new health insurance schemes, whose design varies throughout the country, in addition to the two existing systems. Overall, nearly all the population is now covered by medical insurance. URL: [http://www.mfcindia.org/main/bgpapers/bgpapers2011/am/bgpap2011g.pdf]