THIS PPT IS ABOUT THE HEALTH CARE SYSTEM IN CHINA MOSTLY STUDIED IN ECONOMICS. THIS ALSO SHOWS YOU ABOUT THE INSURANCE POLICY AND GDP RATE AND MANY MORE

1. HEALTH CARE SYSTEM
OF
CHINA
BY TRUSHNA PISE
GROUP 1
YEAR 5

2. MAP OF CHINA

3. STATISTICS
Total population (2016) 1,379,000,000
Gross national income per
capita (PPP international $,
2013)
11,000
Life expectancy at birth m/f
(years, 2016)
75/78
Probability of dying under
five (per 1 000 live births, 0)
not available
Probability of dying between
15 and 60 years m/f (per 1
000 population, 2016)
93/67
Total expenditure on health
per capita (Intl $, 2014)
731
Total expenditure on health
as % of GDP (2014)
5.5

4. COUNTRY PROFILE OF CHINA

5. COUNTRY HEALTH PROFILE
AND
WHO STATISTICAL PROFILE

7. LIFE EXPECTANCY (YEARS),2012

10. ADULT RISK FACTORS
AND
CAUSES OF DEATHS IN CHILDREN UNDER 5

11. SRUCTURE OF HEALTH CARE SYSTEM
• The Chinese healthcare system is organized into three tiers of increasing intensity
of care. With primary care facilities in villages or towns as the first tier, county
hospitals as the second tier, and tertiary hospitals, usually located in major cities.
• As a patients visit facilities on higher tiers, their copayments often increase by
orders of magnitude for each tier. This can lead patients to fail to seek out
necessary treatment.

12. • The Chinese healthcare system is overseen by the Health and Family
Planning Commission to ensure fair healthcare across all of china, however
with 45% of hospitals privately owned and mainly for-profit, quality of care
and professionalism can vary (The Commonwealth Fund).
• The majority of Chinese hospital profits come from prescriptions, which are
often not covered by the general government provided health insurance.
Hospitals are allowed a 15% markup in distribution of prescription drugs,
giving providers financial incentive to generate demand for more
expensive drugs (The Commonwealth Fund).

13. GOVERNANCE OF HEALTH CARE SYSTEM
• In 2013, the Ministry of Health and the National Population and Family Planning Commission were merged
into the National Health and Family Planning Commission as the main agency for health controlled by the
State Council. The State Administration of Traditional Chinese Medicine is affiliated with the new agency. The
National People’s Congress is responsible for health legislation. However, major health policies and reforms
may be initiated by the State Council and the Central Committee of the Communist Party as well, and these
are also regarded as law.
• The National Health and Family Planning Commission directly owns some hospitals in Beijing, and national
universities directly administrated by the Ministry of Education also own affiliated hospitals. Local government
health agencies, usually the Bureau of Health or the Health and Family Planning Commission in each province,
may have a similar structure and often own provincial hospitals. Local governments (of prefectures, counties,
and towns) may have departments of health and own hospitals directly. Centers for disease control and
prevention also exist in local areas and are administered by the local bureaus or departments of health. At the
national level, the China Center for Disease Control and Prevention provides only technical support to the local
centers.

14. FINANCING OF HEALTH CARE SYSTEM

15. • Publicly financed health insurance: In 2014, China spent approximately 5.6 percent of its gross
domestic product (CNY3,531 billion, or USD992 billion) on health care, with 30 percent financed by the
central government and local governments and 38 percent by publicly financed health insurance, private
health insurance, or social health donations.
• There were three main types of publicly financed insurance:
1. urban employment-based basic medical insurance (launched in 1998)
2. urban resident basic medical insurance (launched in 2009)
3. the “new cooperative medical scheme” for rural residents (launched in 2003).
Urban employment-based basic medical insurance is financed mainly from employee and employer
payroll taxes, with minimal government funding. Participation is mandatory for employees in urban areas
Urban resident basic medical insurance, which is voluntary at the household level, covered 314.5
million self-employed individuals, children, students, and elderly adults in 2014.

16. Both urban employment-based and urban resident basic medical insurance are administered by the
Ministry of Human Resources and Social Security and run by local authorities. The rural new
cooperative medical scheme, administered mainly by the National Health and Family Planning
Commission and run by local authorities, is also voluntary at the household level.
Private health insurance: Complementary private health insurance is purchased to cover deductibles,
copayments, and other cost-sharing, as well as coverage gaps, in publicly financed health insurance,
which serves as the primary coverage source for most people. Private health insurance is also called
commercial health insurance, because it is provided mainly by for-profit commercial insurance
companies.

17. INSURANCE OF POPULATION
• Publicly financed insurance covers primary, specialist, emergency department, hospital, and mental health
care, as well as prescription drugs and traditional medicine. A few dental services (e.g., tooth extraction,
but not cleaning) and optometry services are covered, but mostly such services are paid for completely
out-of-pocket.
• Most out-of-pocket spending is for prescription drugs. Reimbursement ceilings are significantly lower for
outpatient care than for inpatient care. For example, in 2016, ceilings were CNY3,000 (USD843) for
outpatient care in primary care facilities, CNY10,000 (USD2,809) for outpatient care in secondary/tertiary
hospitals, and CNY180,000 (USD50,562) for outpatient care in the rural new cooperative medical scheme in
Beijing.
SHANGHAI HEALTH
INSURANCE CARD

18. • For individuals who are not able to afford individual premiums for publicly financed health
insurance or who cannot cover out-of-pocket spending (which is not capped), a medical
financial assistance program, funded by local governments and social donations, serves as a
safety net in both urban and rural areas.
• Medical financial assistance programs prioritize inpatient care expenses. Funds are used mainly to pay
for individual deductibles, copayments, and medical spending exceeding annual caps, as well as
individual premiums for publicly financed health insurance. In 2014, 67.2 million people (approximately
5% of the Chinese population) received such assistance for health insurance enrollment, and 24.0
million people (1.8% of the population) received funds for direct health expenses.
• There are other financial assistance programs to help with unreimbursed emergency department and
other health expenses. These are funded mostly by local governments.

19. HEALTH EXPENDITURE OF CHINA IN
COMPARISON TO OTHER COUNTRIES

20. Problems in China’s health system
 Lack of stable budget resources
 Great variability in ability to pay by employers
 Casual attitudes towards medical expenditure
 Incompatible with new ownership structure
 Deferred payment causes resentment and social problems

21. CONCLUSION
• China has now achieved universal coverage, since 1.295 out of 1.3397 billion people
— fully 95% of the population — have health insurance, and out-of-pocket
spending is 35.5% of total expenditure on health.
• However, the government hails this triumph of risk pooling not as universal
coverage but as achieving the interim goal of expanding basic coverage articulated
in the 2009 reform plan.
• The system continues to have many weaknesses in providing access to quality
services.
• The challenge is to continue to deepen risk pooling, strengthen primary care, raise
clinical quality, improve incentives, and re-engineer service delivery to better fit the
needs of China’s increasingly urban, affluent, and aging society.