Universal healthcare is within reach
Nearly three years ago China's State Council unveiled its plan to extend healthcare to every Chinese citizen by 2020. The ambitious plan was launched at a time when universal health coverage was building momentum globally. In June 2009 US President Barack Obama outlined his plan for a universal healthcare system in the US, vowing to "give every American quality healthcare". Indeed, most emerging economies have either officially implemented or unveiled blueprints toward universal healthcare. India, for example, also aims to have universal care by 2020.
Unlike these countries, China's pursuit of that aim has been driven by two important developments. First, an annual growth of 20-30 percent in government revenue (which outstrips GDP and income growth) has enabled (if not obliged) the government to invest in the country's long neglected healthcare sector. Second, the government hoped to use universal healthcare to boost domestic consumer spending, which has long been suppressed in large part because of the absence of a well-developed social safety net.
Can the goal be achieved by 2020? By the end of 2011 the government should have pumped 1.3 trillion yuan ($173 billion; 133 billion euros) into the health sector. Thanks to the revved-up government commitment, more than 95 percent of Chinese people are already covered by some kind of basic health insurance. Provided the government sustains its commitment to healthcare, it should be relatively easy for China to achieve near universal health insurance coverage by the end of this year.