On Sunday, the State Cabinet, China's council, has proposed to expand the serious illness insurance so that more number of people can be covered in it. As per the proposal, by the end of 2015, all urban and rural residents should be covered in the nation's basic health insurance.

For now, the serious illness insurance is running on trial basis. Under this insurance, people get reimbursement when their medical bill increases beyond basis medical insurance. Main aim of the insurance is to prevent people to face poverty owing to their medical expenses.

The scheme seems to be getting popular among masses, as the number of Chinese people covered in it has crossed 700 million, unveiled official statistics. The system needs to be joined with healthcare infrastructure by 2017. It also needs to be connected with other programs like medical assistance system.

The serious illness insurance program is available in 31 provinces, municipalities and autonomous regions. In 2014, the program helped 1.15 million patients China. As per the State Council, the scheme's reimbursement ratio should increase 50% this year and increase time to time.

The insurance will greatly prove beneficial for people, as many people have admitted that medical bills linked with illnesses like diabetes and cancer can shake the households and leave them bankrupt. The program will not only lessen poverty happening due to illness, but would also strengthen universal healthcare system. In the last six years, China has spent a lot on healthcare reform, around $480 billion.