The city of Taiyuan, along with other 30 cities, has become a trial pilot city where people can get income tax deductions for having commercial health insurance, Shanxi Evening News has reported.

The threshold for personal income tax will rise to 3,700 yuan ($569.58) from the current 3,500 yuan if the premium of an individual's commercial health insurance reaches 2,400 yuan, according to an official document released by the Ministry of Finance, the State Administration of Taxation, and China Insurance Regulatory Commission.

Taikang Insurance, PICC and Sunshine Insurance Company were approved to sell the health insurance products in Shanxi with deducted personal income tax. Many other insurance companies are expected to make such products available.

The insurance covers hospital medical treatment and certain outpatient services with no time limit, including for the most common chronic diseases like high blood pressure, diabetes, and coronary heart disease.

Declining is not allowed if the insured has diseases and renewal of insurance should be accepted.

Basic health insurance covers a wide range but is insufficient, said an official with the Shanxi Insurance Regulatory Bureau, adding that the tax-deducted health insurance will help improve the health insurance level and alleviate poverty caused by diseases.