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China established on Thursday a medical insurance research agency, which will serve as a "think tank" for the development of the country's medical services.

The Medical Insurance Research Institute was established to promote the development of the country's medical insurance industry and provide more access to basic medical insurance.

The institute will research different medicare systems.

Tian Chengping, minister of labor and social security, said medical insurance is important for the general public, economic and social development.

Official statistics show that 157 million people in China were covered by basic medical insurance at the end of last year.

China's State Council, the cabinet, adopted a five-year plan to further develop the country's public health system last week.

China will establish a basic medical and healthcare network covering all urban and rural residents by the end of 2010, according to the plan, which was approved in principle at an executive meeting of the State Council.

The network will include a public health service system, a rural cooperative medical care system, an urban community medical service system and drug management and public hospital management systems.

China encourages foreign investment and more private investment in medical services.

(Xinhua News Agency March 30, 2007)