China's medical insurance fund reports $470b revenue surge in 2023

Payment reforms are urged for a stable healthcare fund.

China's medical insurance fund earned $470b (CNY3.4t) in revenue last year but requires payment reforms to remain stable amidst an ageing population and rapid socioeconomic growth.

The fund also saw $373b (CNY2.7t) in income last year with $304b (CNY2.2t) spending, resulting in an annual surplus of $69b (CNY500b).

China's basic medical insurance includes programs for urban and rural residents, primarily serving the unemployed, schoolchildren, rural dwellers, and urban workers.

The program for rural residents recorded a surplus of $105b (CNY760b) despite a tight balance, whilst both programmes saw an increase in spending last year, due to the expanding coverage of new medicines and technologies. Meanwhile, the government’s employee programme recorded a surplus of $317b (CNY2.6t).

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In addition, a total of 126 drugs were also added to the national drug reimbursement list last year and about 130 million cross-regional medical bills were directly settled, improving access to insurance services.

The National Healthcare Security Administration said that China's health expenditures are expected to keep rising due to the continuously ageing population, the decreasing ratio of workers to retirees, and overall socioeconomic development.

The administration also revealed that over 1.33 billion people enrolled in its basic medical insurance program last year, reflecting a coverage rate of 95% and 4 million more people insured than in 2022.

The basic medical insurance program funded nearly 186 million low-income residents last year, saving them $26.0b (CNY188b) in medical expenses.

($1.00 = CNY7.24)