China is reportedly planning to allow more private investment in health insurance, in a bid to boost its health sector.
An executive meeting of the State Council, China’s cabinet was cited by Xinhua news agency as saying that the government also intends to extend support to private insurance firms for the construction of new medical facilities and elderly homes.
Report on the government’s new plan comes after Beijing revealed its plans to allow foreign investors to hold 100% ownership of hospitals in seven cities and provinces.
As per a McKinsey report, the country’s healthcare spending is expected to reach around $1trn by 2020 from $357bn in 2011.
This could lead to a rapid inflow of investment from private insurers, hospital operators and other investors, according to Reuters.
In June, Deutsche Bank report stated that commercial insurance premiums increased by 30%, compared to 18% in the state-backed sector, which is reflecting the expansion of private health insurance in the country.
Xinhua also noted that Beijing plans to extend healthcare service sector to a value of $1.3trn by 2020.
In China, about 1.4 billion people are covered under state health insurance schemes, which provide limited coverage to individuals. This results in payment of a large portion of medical fees by the individuals themselves.
Ping An Insurance Group, PICC Health Insurance, Kunlun Health Insurance and Hexie Health are some of the largest private health insurers in the country.
Image: China intends to allow more private investment in health insurance. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.