he state encourages enterprises to establish supplementary medical insurance for their employees, mainly for settling medical expenses not covered by the enterprise employees' basic medical insurance. The part of the enterprise's supplementary medical insurance premiums that is within four percent of the total wage bill is booked as the production cost.
A civil servants medical subsidy system has been established for civil servants and employees of public institutions who formerly enjoyed free medical services. The state is gradually establishing a social medical aid system mainly funded by the government to provide basic medical security for people with special difficulties.
The reform of China's medical insurance system faces many heavy tasks. In future, the state will further expand the coverage of medical insurance to steadily include eligible people in all kinds of employment in urban areas in the basic medical insurance scheme; strengthen and improve medical insurance management and services; curb the irrational increase of medical expenses, and provide better services for the insured; establish and improve a multi-level medical security system, gradually lessen personal burden on the insured, and realize the stable operation and sustainable development of the medical insurance system.
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