In a dramatic news announcement, China recently stated that they will begin providing health care coverage for almost all of their 1.3 billion citizens. The cost is estimated at $123 billion over the next three years for coverage. Currently, government health care assistance is provided for a limited few Chinese citizens.
It is estimated that by 2011, 90 percent of Chinese citizens in urban and rural areas will have access to basic medical services. There will also be a concerted effort to assure that the quality of coverage is equal in rural and urban areas. The government was compelled to launch the project because of growing public concern of skyrocketing medical fees and a lack of access to facilities. Low rates of medical coverage helped spur the decision.
Another driving factor in implementing the Chinese universal health care policy was to boost their slowing economy. Chinese economists believe that if citizens have universal care, they wont to worry about saving money for potential medical costs and will in turn spend more on consumer goods.
The economic based decision was based on a 2007 survey which found that rural citizens who already had benefits of government coverage, spend more on consumer goods than those who don’t have coverage. The very idea that universal health care can be an economic stimulus tool could provide a boost to the efforts to pass universal health care in the United States.
Obviously, China and the U.S. have opposite governments, but it will be interesting to see if this fascinating idea actually works to boost their economy. If it does, will universal health care proponents here in America use it as an argument/model for fully government-sponsored health care? Well keep our ears open.
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