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Financial aid for Shanghai elderly

By Wang Zhenghua (China Daily)
Updated: 2006-09-04 09:55

SHANGHAI: After more than 60 years of no job and therefore no medical insurance or chance of a pension, 88-year-old Jianliu Community resident Xie Wenying was overjoyed to learn she could finally enjoy such benefits.

It's all thanks to a new government programme aiming to give all Shanghai senior citizens without "social insurance" more protection.From now on, elderly people like Xie will not need to worry about how to make ends meet with a limited monthly allowance or be a burden on their children.

The programme was launched on Friday. It gives citizens aged 70 or over, who have lived in the city for at least 30 years and are not covered by the current social insurance system, a monthly allowance of 460 yuan (US$57.5). It also means 50 to 70 per cent of any medical costs are covered by the government.

The authorities estimated the programme would mainly protect people like the bereaved spouses of former workers, retired residents living on their spouses' allowances and the elderly who do not have a job or insurance.

The programme is of special significance as the ageing population in Shanghai is growing. At the end of 2005, 2.7 million one in five people in the metropolis were aged 60 or more, much higher than the national average of 11 per cent.

Xie quit her job to be a fulltime housewife in her younger days. Many old people like her, with no employer, were not included in the current pension and medical insurance scheme and have to live on 290 yuan (US$36) issued by the government each month to cover their basic costs.

The new scheme will help them deal with ever-increasing medical costs.

"It's very stressful living alone and not being able to afford my medical expenses," said Xie, who suffers from heart problems and glaucoma. "But now I think I can live an easier life."

So far it seems the policy has been warmly received. In the past few days, people relying on walking sticks or confined to wheelchairs have rushed to their street committees to find out more details.

"This is treatment that (people without social insurance) haven't been able to enjoy for decades," said Pan Yumei, a director of the Middle Huaihai Road Subdistrict Office.

The group's base is near Shanghai's trendy bar area Xintiandi and governs 22 residential communities. It is estimated that 1,500 of the 90,000 residents in the area will be able to claim money under the new programme.

"The policy will have a huge impact on the family and all of society," said Pan. "It may help elderly people regain their self-respect and enhance their social position."

The medical aspect to the programme is of major significance, as China's soaring medicine prices and hospital charges have scared away many poor patients.