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Commercial insurance payout extended to community hospitals

By Li Huayu (chinadaily.com.cn)
Updated: 2009-05-27 17:18

A total of 30 Shanghai-based insurance companies have signed agreements with the Sixth People's Hospital of Shanghai to include its four contractual community hospitals into their coverage of commercial insurance compensations.

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This is the first time that compensation for medical insurance and dread disease insurance have been made widely available to community hospitals. The 30 insurers include China Life Insurance, China Pacific Life Insurance, Ping An Life Insurance, AIA, and PICC Health.

Previously, payouts for commercial health insurance were mainly restricted to second and third-class hospitals. The new medical reform aims to significantly increase visits to community hospitals, making the inclusion of these hospitals into the payout scope widely viewed as a big step forward.

However, most insurance companies are moving cautiously towards that end as they believe community hospitals have laggard medical facilities and less experienced staff compared with second- and third-class hospitals, resulting in irrational or even excessive treatment...

The full text is available in the May Issue of China Insurance. Please visit publications for more subscription details.