The Tianjin municipal government released its guideline for deepening municipal medical reform on August 21 in a bid to provide cheaper and better service.

The guideline was published after the Ministry of Health issued a list of some 300 essential drugs that will be central to its plan to reform the health care system and cut medical cost within the next ten years.

According to the guideline, 95% of Tianjin’s urban employees and 85% of urban residents will be covered by the basic medical insurance system by the end of the year.

One of the primary goals of the reform is to provide quality medical services and make them accessible and affordable to all residents in urban and rural areas, an official with the Municipal Health Care Bureau in chare of the reform said.

The municipality will work out its list of essential drugs based on the national list, the guideline states. All drugs included will be covered by medical insurance but the percentage costs of coverage will be much higher than those not included in the list to give priority to those needing the essential drugs.

Over 500 types of essential drugs have been included in the list, the largest inChina, and more drugs will be added, according to the municipal health bureau.

The system also stipulates that all drugs on the list and drugs for all public-funded hospitals will be purchased and distributed at fixed prices by the municipal government to safeguard their supply.

Patients will have access to lower prices after the list is implemented. All community health care institutions in the city’s nine districts will be equipped with the essential drugs and be able to sell them at the purchasing price starting this year. In the past, hospitals had the right to increase prices of medicine by over 15 percent and then sell them to patients. The economic loss for the institutions will be covered by the medical insurance and financial subsidies.

The municipal government will invest more into public health services, increasing the fund to 200,000 yuan per 10,000 people—twice the current level. More medical subsidies will also be offered to recipients of the subsistence security allowances.

Tianjin also plans to set up 1,700 standard medical stations in the next two years and train over 400 doctors annually for each district and county.

By Guo Changdong