Guangzhou municipal government recently issued an “Interim Regulations for Urban Resident Basic Medical Insurance of Guangzhou Municipality” with effect from June 1, 2008.

The coverage of the urban resident basic medical insurance system will cover all people with Guangzhou residency who are not covered by the urban employee basic medical insurance system, flexible employee basic medical insurance system and rural cooperative medical care system, according to the new regulation. In addition, the new regulation provides that children of non-residents who work in Guangzhou and who are enrolled in Guangzhou schools are also covered by the urban resident basic medical insurance system. The new provision is expected to benefit 1.5 million children whose parents work in the city but are not Guangzhou residents.

Guangzhou municipal government also announced that it will increase its annual per capita healthcare subsidy this year to CNY 122, up from CNY 52 in 2007.