China boosts medical insurance spending on innovative drugs in plan

Spending on these newly negotiated drugs was 3.9 times higher in 2024 than in 2020.

China's spending on innovative drugs covered by medical insurance has grown significantly during the 14th Five-Year Plan period (2021 to 2025), rising by an average of 40% annually, according to the National Healthcare Security Administration (NHSA).

In 2024 alone, spending on these newly negotiated drugs was 3.9 times higher than in 2020, NHSA head Zhang Ke said. 

Overall, medical insurance fund expenditures between 2021 and 2024 reached ~$1.7t, with an average annual growth rate of 9.1%.

Deputy head Li Tao said that the basic medical insurance fund spent $410b (CNY2.98t) in 2024. 

This helped reduce patients’ out-of-pocket expenses by around 5% year-on-year.

Authorities also intensified oversight of fund usage, recovering $14.6b (CNY104.5b) linked to fraud and abuse. 

As of end-2024, the cumulative balance of the medical insurance funds stood at $540b (CNY3.86t).

($1.00 = CNY7.18)