Hainan province has added HIV/Aids to its list of basic illnesses that government employees can file insurance claims for.
Government workers will be able to secure reimbursement for up to 50,000 yuan (HK$47,000) of claims that include HIV/Aids treatment, the China Youth Daily reported.
The move will substantially reduce the typical treatment cost of US$10,000 (HK$78,800) per year.
Concerned government departments confirmed the report, but were not willing to elaborate on details of the decision.
The change was reportedly initiated by Hainan's Aids Prevention and Control Commission, not because large numbers of government employees were suffering from the disease but based on the principle that all workers - including those with HIV/Aids - should have equal rights to basic medical care.
" The coverage will not deny new workers with a pre-existing condition of HIV/Aids," an official with the Hainan Critical Illness Prevention Centre said in the report.
" Currently, we don't know of any government workers who have the disease, but it is possible they themselves do not know that they are infected or that their illnesses have evaded detection in the past."
The deputy of the Medical Insurance Department at the Hainan Labour and Social Security Bureau, told the China Youth Daily that in addition to covering treatment costs, the 50,000 yuan reimbursement could also be applied towards participating in experimental treatment research projects.
Although the Ministry of Health's national regulations on managing HIV/Aids clearly state that people with the disease should not be discriminated against and should enjoy equal rights that include medical treatment, most provincial labour and social security bureaus will only reimburse listed conditions.
Basic medical insurance typically requires that government officials pay only 10 per cent of pharmaceutical and treatment costs, with their work units covering the rest of their medical bills. There has been talk of significantly reducing the insurance coverage for government employees in the future, to only cover serious illnesses after deducting 2,000 yuan per consultation.
At some state-owned enterprises, workers are usually responsible for 80 per cent of their medical bills.
However, despite ongoing talks about providing basic medical insurance to everyone, people who are unemployed, privately employed or work for a private enterprise must assume the entire burden of their medical care unless they purchase their own insurance cover.