The State Council released a guideline on the implementation of medical insurance payment reform on June 28, as a way to improve medical services and adjust the allocation of medical resources.

The guideline is aimed at better ensuring the rights of the insured, regulating medical service industries, and controlling the unreasonable growth of medical fees while giving full play to the fundamental role of insurance in medical reform.

According to the plan, the medical insurance payment reform should ensure basic medical treatments, promote reasonable use of medical resources, enhance self-management of medical institutions, and coordinate efforts by different departments while considering the local conditions.

By 2020, the reform of medical insurance payments should cover all medical institutions and services with diversified payment methods in place for different diseases.

To achieve the target, hospitals and medical institutions are asked to practice different payment methods in line with illnesses and treatments. Meanwhile, traditional Chinese medicine and medical service are also encouraged.

While keeping an eye on treatment costs, efforts will be also made to control medical quality and strengthen fund auditing, information security, and personnel management.

Governments are required to make scientific budgets for medical insurance funds and publish detailed settlements for public supervision.

In addition, to ensure smooth implementation of the plan, related departments are urged to establish an efficient working mechanism while enhancing communication and coordination.