China will establish a nationwide medical insurance system to cover about 50 million urban employees by the end of this year, said the Ministry of Labor and Social Security (MLSS).

Most provinces and autonomous regions have announced their policies and regulations on medical insurance, and the reform is proceeding smoothly.

The MLSS will step up publicizing the changes and tightening regulations on related local organizations this year to promote the new system.

China initiated the reform of its medical system at the beginning of last year. A special fund has been set up to cover patients' large medical bills.