“When I checked out after hospitalization, I immediately noticed the ‘Trade Union Subsidy’ column showing 9,155.01 yuan—that 1-yuan medical mutual aid contribution was totally worth it!” said Ms. Wu, an employee at Huading Thermal Insulation Technology Co. in Pinghu, Zhejiang. This year, her medical insurance covered part of her hospitalization expenses, but she still had to pay over 60,000 yuan out of pocket. Thanks to the union’s subsidy, she received nearly 10,000 yuan in financial support.
This “small contribution, big protection” initiative stems from Pinghu’s worker medical mutual aid program, launched in December 2014. Under this system, the annual 50-yuan premium is split: 49 yuan is covered by municipal and town-level trade unions, while workers only pay 1 yuan to enroll. So far, the program has run for 11 cycles, with 1.314 million cumulative participants and nearly 300,000 beneficiaries.
“Employees have no hesitation joining, and companies don’t need extra investment. All 418 workers at our company are enrolled, with 182 already receiving subsidies totaling 89,800 yuan,” said Shen Wei, union chair at Xinyi Electric Heating Machinery Co. This year, the highest subsidy for an employee reached 4,187.5 yuan.
The program has achieved full coverage among Pinghu enterprises with 25 or more employees, ensuring no eligible worker is left out. It marks a shift from “basic coverage” to “universal benefits.”
Beyond expanding access, Pinghu’s trade union has streamlined services, becoming the first in Zhejiang to enable “zero trips” for medical mutual aid claims. Since 2015, the system has been integrated with social and medical insurance platforms, allowing instant settlement upon hospital discharge. Subsidies are displayed on discharge bills, and workers receive real-time SMS notifications.
For major or critical illnesses, Pinghu offers tiered subsidies: 20% for out-of-pocket costs between 600–5,000 yuan, 50% for 5,000–10,000 yuan, and 70% for amounts above 10,000 yuan (uncapped). To date, 74.058 million yuan in subsidies have been disbursed.
Additionally, the union collaborates with the medical insurance bureau and third-party analysts to develop a subsidy distribution platform. Big data tracks enrollment and claims, flagging workers with high medical expenses or financial hardship. Grassroots unions then follow up with targeted assistance, transforming ad-hoc aid into proactive, immediate support.
According to Pinghu’s trade union officials, this model ensures efficient and compassionate care from labor organizations.
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