Key Highlights of China's 2019 Government Work Report on Healthcare and Life Sciences Sector

On March 5 at 9:00 a.m., the Second Session of the 13th National People's Congress opened at the Great Hall of the People, where attendees listened to the Report on the Work of the Government delivered by Premier Li Keqiang of the State Council.

To this end, we have focused on extracting the sections containing content related to healthcare and medicine. The main contents include:

First, ensure the provision of basic medical and health services.Continue to raise the level of coverage under the basic medical insurance and critical illness insurance for urban and rural residents. The per capita fiscal subsidy for resident medical insurance will be increased by 30 yuan, with half of this amount allocated to critical illness insurance.

Lower and standardize the deductible for critical illness insurance, increase the reimbursement rate from 50% to 60%, and further alleviate the medical burden on patients with serious illnesses and individuals in financial hardship.

Strengthen the Prevention and Treatment of Major Diseases. With tens of millions of families in China affected by cancer, it is essential to implement a national cancer prevention and control action plan, advance preventive screening, early diagnosis and treatment, and key scientific research breakthroughs, with a focused effort on alleviating critical public livelihood concerns.

Strengthen the prevention and control of common chronic diseases, and include outpatient medications for conditions such as hypertension and diabetes in medical insurance reimbursement.Accelerate the implementation and improvement of policies for direct settlement of cross-provincial medical expenses, enabling patients receiving care outside their home province to use their insurance cards for immediate settlement at all designated hospitals as soon as possible, thereby truly facilitating healthcare access for the mobile population and elderly individuals relocating with their families.

Deepen the comprehensive reform of public hospitals.

Promote private healthcare provision.

Accelerate the establishment of a telemedicine service system, strengthen the training of primary care medical personnel, and improve the quality of tiered diagnosis and treatment as well as family doctor contract services.

Adhere to the principle of prevention first, and allocate all additional fiscal subsidies for basic public health services exclusively to villages and communities, ensuring that grassroots populations truly benefit.

Strengthen maternal and child health services.Support the inheritance, innovation, and development of traditional Chinese medicine. As drugs and vaccines are critical to life safety, it is imperative to strengthen full-process regulation; impose severe penalties on violators without leniency, and seriously investigate and handle cases of negligence and dereliction of duty, so as to firmly safeguard the line of defense for the people’s lives and health.

Improve the social security system and policies.Promote the Development of a Multi-Tiered Old-Age Security System.Continue to raise the basic pension for retirees.Implement benefits and guarantees for retired military personnel, improve the system for retired soldiersBasic old-age insurance and basic medical insurance continuation policies for soldiers. Appropriately raise urban and rural minimum living allowances and special assistancestandards for assistance, and strengthen the protection of children in distress. Increase efforts to help urban employees in difficulty escape from poverty. EnhanceDisability Prevention and Rehabilitation Service Levels. We must strive to provide emergency relief and assistance to the public, offering timely help in their hour of need.We must firmly safeguard the baseline for basic public livelihood.

Second, accelerate the development of emerging industries. Deepen the research, development, and application of big data and artificial intelligence; foster emerging industrial clusters in next-generation information technology, high-end equipment, biopharmaceuticals, new energy vehicles, and new materials; and strengthen the digital economy.

Uphold inclusive and prudent regulation, support the development of new business formats and models, and promote the healthy growth of the platform economy and sharing economy.Accelerate the promotion of “Internet Plus” across all industries and sectors.Continue to promote faster internet speeds and lower fees. Launch pilot projects for gigabit broadband access in urban households, upgrade networks for remote education and telemedicine, and expand and upgrade mobile network base stations, enabling users to tangibly experience faster and more stable internet connectivity.This year, the average tariffs for broadband services for small and medium-sized enterprises will be reduced by another 15%, and the average tariffs for mobile data traffic will be cut by more than 20%. Mobile number portability will be implemented nationwide, and package plans will be standardized to ensure tangible fee reductions and transparent pricing for consumers.

We have persisted in safeguarding and improving people’s livelihoods during development, ensuring that the fruits of reform and development benefit the general public more extensively and equitably. In response to the impact of changes in the external environment on employment, we have promptly introduced measures to stabilize employment. We have made vigorous efforts to implement policies on the wages and benefits of compulsory education teachers, and strengthened the development of small-scale rural schools and township boarding schools. A central adjustment system for basic old-age insurance funds for enterprise employees has been established; basic pensions for retirees have been raised, and the minimum standard for basic pensions for urban and rural residents has increased from 70 yuan to 88 yuan per month. Standards for preferential treatment and subsistence allowances have continued to rise, and the “two subsidies” for persons with disabilities now cover all eligible individuals. We have strengthened service and management for retired military personnel and safeguarded their legitimate rights and interests. Furthermore, we have deepened the coordinated reforms of medical services, medical insurance, and pharmaceuticals.

Third, we steadily advanced the tiered diagnosis and treatment system. We raised subsidy standards for residents’ basic medical insurance and increased the reimbursement rate for critical illness insurance. We accelerated reforms in the review and approval of new drugs, resulting in significant price reductions for 17 anti-cancer drugs and their inclusion in the National Reimbursement Drug List. We expedited the implementation of cultural benefit programs and continuously strengthened public cultural services at the grassroots level. Nationwide fitness initiatives flourished, and Chinese athletes achieved remarkable results in international competitions.

Promote stable growth in consumption. Adopt multiple measures to increase the income of urban and rural residents, thereby enhancing their purchasing power. Effectively implement the newly revised Individual Income Tax Law to ensure that approximately 80 million taxpayers eligible for tax reductions fully benefit from these policies. Adapt to new changes in consumer demand, expand the supply of high-quality products and services through diverse channels, and accelerate the removal of barriers restricting private capital entry.

China’s population aged 60 and above has reached 250 million. We must vigorously develop elderly care services, particularly community-based elderly care. Institutions providing daytime care, rehabilitation and nursing, meal assistance, and mobility support within communities should receive policy support such as tax and fee reductions, financial subsidies, and preferential pricing for water, electricity, gas, and heating. Newly built residential areas should be equipped with supporting community elderly care facilities. We should reform and improve policies integrating medical and elderly care, expand pilot programs for long-term care insurance, and ensure that older adults enjoy a happy later life, thereby securing a promising future for generations to come.

Infant and toddler care is a matter of concern for countless households.In response to the new circumstances following the implementation of the universal two-child policy, we will accelerate the development of diverse forms of infant and toddler care services, support social forces in establishing childcare institutions, and strengthen child safety protections. We will also promote the growth and expansion of the tourism industry.

Stabilize automobile consumption and continue to implement preferential policies for the purchase of new energy vehicles. Develop new forms and models of consumption, and promote the integrated development of online and offline consumption. Improve rural distribution networks and support the development of e-commerce and express delivery services. Strengthen the protection of consumer rights and interests, enabling the public to consume with confidence and convenience.