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China has for the first time included commercial health insurance in its 2026 government work report, signalling efforts to strengthen the country’s social safety net and support the growth of innovative drugs and medical devices.
On Thursday, Chinese Premier Li Qiang said the government would “work faster to develop commercial health insurance” and promote the “high-quality development of innovative drugs and medical devices” to better meet people’s diverse needs.
Behind the unusual emphasis were an ageing population and slower government revenue growth, analysts said. Healthcare expenditure in China reached more than 9 trillion yuan (US$1.3 trillion) in 2023, growing at a compound annual rate of 9.9 per cent since 2014, according to a July 2025 report by Swiss Re Institute.
Further increases were projected, driven by greater use of medical services and rising drug and treatment costs. However, the annual surplus of the basic medical insurance fund fell for two consecutive years to 470 billion yuan in 2024, the report said.
“It will become harder for the state to carry that burden through basic public insurance alone,” said Anthony W. D. Anastasi, assistant professor of economics at the Sino-British College, University of Shanghai for Science and Technology.
Chinese Premier Li Qiang says China will promote the “high-quality development of innovative drugs and medical devices” to better meet people’s diverse needs. Photo: AFP
Official data showed that China’s mandatory basic medical insurance covered more than 95 per cent of the population. Yet individuals, particularly those in middle-income and high-income groups, were increasingly seeking treatments and services beyond what was available under the basic coverage, according to Song Lynn, chief economist for Greater China at ING Bank.
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