China will launch a basic medicare program in urban areas this year on a trial basis as part of efforts to extend medical insurance to more urban residents.

A State Council meeting yesterday, chaired by Premier Wen Jiabao, decided to pick up one or two cities in some well-off provinces to test the program, according to a China News Service report yesterday.

Middle school and primary school students, children and unemployed urban residents who are not covered by the medicare system for employed residents can join the basic medicare program.

Local governments will earmark special funds to help cover part of their expenses on medical treatment for major diseases.

At the meeting, officials said local governments should decide the size of the appropriated fund and work out standards for the program according to local economic development levels.

Officials also urged increased supervision for the safety of the funds.

The central government reiterated that the trial program is a significant task to speed up the country's reform of its health care system.

According to statistics from labor and social security authorities, the social medical insurance system for employed urban residents benefits only about 157 million of the country's more than 1.3 billion population.

Editor: Yan