The central government proposes to merge the separate national medical insurance programs for urban and rural residents. It is a major move to push forward medical reforms, ensure rural and urban residents have equal access to basic medical insurance, promote social justice, and boost people's well-being.

At present there are three separate medical insurance plans: the basic medical insurance system for urban employees, the basic medical insurance system for urban residents that covers mainly those under 18 years old and the unemployed, and the new rural cooperative medical insurance.

According to the State Council, or the Cabinet, the planned new medical insurance would cover both urban and rural residents who are not covered by the urban employees' medical insurance system, and could cover around 75 percent of inpatient medical fees. Reimbursement for outpatient charges will be raised gradually.

Under the new medical insurance plan, all the subscribers will pay the premium at a unified rate, which means rural residents may have to pay more than they pay now.

Local governments have been asked to submit their respective insurance merger plans by the end of the year.