China’s government announced the decision to spend more than $120 billion over the next three years in an attempt to repair the nation’s healthcare system. The State Council released the three-year reform plan during a meeting on Wednesday.

 

The plan aims to improve the coverage of basic medical insurance, to improve access to medical treatment and to set up a system of “basic medicines” covered by the medical insurance system. The main goal is to make “basic health-care services” available to all of China’s 1.3 billion citizens.

Insurance will cover all medicines, and an agency will be established to administer the system, according to the official Xinhua news agency.

Under the new plan, the government would subsidize public hospitals’ infrastructure. The situation is critical, as currently, about 400 million people do not have any kind of health insurance.

 

“According to initial estimates, all levels of government will spend around 850 billion yuan over the next three years to ensure these five reforms,” the State Council announced.

 

Preliminary estimates say the total cost of the plan would be 850 billion yuan ($124 billion) over three years.

“Both central and local governments should increase health funding. The percentage of government's input in total health expenditure should be increased gradually so that the financial burden of individuals can be reduced,” the draft report said, according to Xinhua. The draft was made by a team of officials and experts from 16 departments, including the Ministry of Health and the National Development and Reform Commission.