China: 19 million people to withdraw from public health insurance
~The minimum premium for medical insurance has doubled.
~Wage increase for migrant workers is only 24%
We bring you a summary of articles published in World View by Hisashi Katsumata.
China’s public health insurance:
China’s economy is in a slump, and people’s lives are being shaken up.
A large number of people are withdrawing from public health insurance.
This is the result of rising insurance premiums.
Financial Time (December 4th)
An article titled “China’s mass dropout from the public health insurance system” was published.
The number of people enrolled in China’s public health insurance system has decreased by 19 million.
People with medical insurance in China:
The Chinese government’s public health insurance system has multiple programs.
The total number of subscribers exceeds 1.3 billion.
The number of subscribers has decreased again this year:
In 2022, an unusual situation will occur where the number of subscribers will decrease by 19 million.
It is expected to decrease further this year. Officials and analysts are sounding the alarm.
Official data:
Eight Chinese provinces have released subscriber data for the period January to September 2023.
In seven of these provinces, the number of people enrolled in medical insurance has decreased compared to a year ago.
The number of people withdrawing from medical insurance is rapidly increasing:
The number of people withdrawing from China’s public health insurance has been rapidly increasing in recent years.
A medical analyst analyzed the reason for this.
1. Insurance premiums and copay rates are too high
2. The burden ratio on the medical insurance side is too low
3. Household income in China is on the decline
Health insurance costs are too high for many Chinese citizens.
Farmers and migrant workers:
The situation is especially serious for farmers and migrant workers.
Low-income people cannot enroll in ’medical insurance for urban residents or private medical insurance’.
Hang Seng Bank: Wang Dan Chief Economist
Chinese people save much of their income in case of serious illness or other emergencies.
This is weakening China’s economic recovery and the effectiveness of government measures.
Medical costs in China are too high:
~At Chinese hospitals, the doctor always asks, “Can you afford the medical expenses?” ’ I hear.
In China, a public health insurance system was established 10 years ago.
Local governments in China do not have the funds to invest in insurance systems.
The situation is that increased medical costs are being passed on to members.
National Bureau of Statistics of China:
1. From 2018 onwards, the medical insurance system and minimum insurance premiums will be more than doubled.
2. However, the average wage growth rate for migrant workers remained at 24% during the same period.
Local insured persons:
People with insurance in rural areas face high out-of-pocket medical costs.
If a person with health insurance in a rural area visits a hospital in an urban area, the out-of-pocket cost will be 50-70%.
Increase in number of people withdrawing from medical insurance:
Given this situation, many people have doubts about the value of China’s public health insurance.
Southern China, Hunan Province: Yuan Lisha (45)
This year, I decided to cancel my major medical insurance.
The cost of the back surgery I underwent in March was 20,000 yuan (400,000 yen).
The medical insurance burden rate is said to be less than 40%.
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