Beijing increases funding for hospitals

The two new programs are largely subsidized by the government, and people can participate on a voluntary basis, with users paying a reasonable premium.

For instance, the government is allocating 450 yuan for each participant this year, up 30 yuan from 2016, according to Liang Wannian, head of the commission's Medical Reform Department.

The premium paid by the participant varies by region but is less than the government's contribution, he added.

Liang said the government had increased its allocation for each participant for eight consecutive years.

At the same time, he said, the government would strictly curb improper increases of medical costs.

The average annual increase in medical costs at public hospitals, he said, has to be kept under 10 percent. To meet that goal, the commission has been pushing reforms of public hospitals. That includes ending a longtime policy of marking up drug prices, which led to over-prescriptions and unnecessary treatments, and wasted the money of patients and insurance programs.

Last month, Beijing led the way by scraping drug price markups at all public hospitals, and all hospitals nationwide will follow suit by the end of September, ang said. Government funds will support the hospitals, he added.