China Will Jumpstart Sluggish Economy With Universal Health Care For All Residents

China Will Jumpstart Sluggish Economy With Universal Health Care For All Residents in Individual Health Insurance

In world health insurance news, China recently announced they will provide health care coverage for nearly all of its 1.3 billion citizens.

The cost for covering the largest single country population is an estimated $123 billion over the next three years, reported The New York Times.  Currently, only some Chinese citizens receive government assistance for health care costs.

By 2011, say Chinese officials, 90 percent of citizens in both rural and urban areas will have basic access to medical services. They will also improve the quality of care provided in health centers, and ensure quality is more equal in rural and urban areas, wrote the Times article.

“Growing public criticism of soaring medical fees, a lack of access to affordable medical services, poor doctor-patient relationship and low medical insurance coverage compelled the government to launch the new round of reforms,” wrote Xinhua, the Chinese’s state news organization.

Another driving factor in implementing the Chinese universal health care policy — passed today — was to boost their slowing economy.

Chinese economists believe that if citizens have universal care, they won’t to worry about saving money for potential medical costs and will in turn spend more on consumer goods.

Their conclusion is party based on a 2007 survey that found people living in rural areas already with benefits of government-run health insurance plans spend more then those who aren’t covered.

While the article doesn’t provide specifics on that survey or further justifications, the idea that universal health care can be an economic stimulus tool is near mind-boggling from an American viewpoint.

Obviously, China and the U.S. have opposite governments, but it will be interesting to see if this fascinating idea actually works to boost their economy.

If it does, will universal health care proponents here in America use it as an argument/model for fully government-sponsored health care?

We’ll keep our ears open.

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