Inadequacies of China's health insurance system - MarketWatch

Huang attempted to supplement the cost of her university tuition and medical expenses through part-time jobs. In her online diary she wrote: "The more I work, the worse the disease gets and the more I have to spend on my treatment. My family only becomes poorer. This is what compels me to work harder to earn more money." Her diary postings attracted media attention and Net users opened a relief fund for her, raising 200,000 yuan in donations. Huang died of SLE on March 18.

When the onset of death is quick, the terms between the patient and society appear to be simpler. But more discussion on terminal deaths has raised questions over the current state of medical institutions.

While the health care insurance system for urban residents kicked off in 2010, basic insurance coverage for the entire population has yet to be implemented.

According to Caixin estimates, between 2009 and 2011 the total investment from all levels of governments in the medical insurance system reached 732.6 billion yuan. But such payments fail to cover the terminally ill.

The Insurance Association of China and the Chinese Medical Doctor Association jointly define "major illness" including altogether 25 types of illnesses in which malignancy, coronary artery bypass surgery, major organ transplants or hematopoietic stem cell transplants are compulsory in the commercial insurance coverage.

A survey by China Health Promotion Foundation shows that the cost of a single hospitalization of a patient with chronic illness can amount to about half of the per capita annual income of an average urban resident and more than 1.5 times of a rural resident's per capita annual income.

Xia Yang, a doctor at Beijing Shijitan Hospital, has worked as a trauma relief volunteer for many years. He said that even the major illnesses covered by the commercial insurance policy cannot cover all major serious clinical illness. Some common illnesses may also trigger infections and complications, which may ultimately end up in astronomical medical bills.