China is all set to enhance a basic medical care insurance plan in the country and ensure a coverage rate of no less than 95% for both urban and rural population by the end of the current fiscal.

The government is working on to provide per-capita subsidy of RMB240 ($38.1) per annum for basic medical insurance programs, reported China daily.

According to a government circular, authorities have been asked to expand the basic medicine system and improve the assessment and supervision of the quality of the drugs under the provisions.

The circular also indciated that the authorities should step up efforts to deepen reform of grassroots health care institutions in 2012 in addition to improve service capability of county-level hospitals.

A pilot reform program will be launched to upgrade the working methodology and infrastructure of approximately 300 county-level hospitals.

The circular urged authorities to put efforts especially in regard to hospitals’ management, funding, personnel, medicine supply and pricing systems.

Promotion of the development of commercial health insurance and non-public hospitals in China is also called for by the circular.

The circular has asked the central and local authorities to formulate plans before May 1 to carry out the task.