Medical Security Law of the People’s Republic of China
FRAMEWORK
Adopted on August 28, 2026, it is China's first foundational law for the entire healthcare security system in China, broadening the legal coverage and protection compared with the Social Insurance Law. It provides an unified legal framework for all initiatives somehow related to medical insurance funds: procurement, reimbursement, payments by BMI Basic Medical Insurance funds of medical services, participation in BMI payments by employees and employers, maternity insurance, funds management and governance, financial and accounting system by public authorities, supervision and liabilities.
WHAT’S NEW
Procurement – Centralized system is now codified as ordinary system for procurement of drugs and medical consumables. Practices such as VBP Volume-Based Procurement, Pilot programs or local initiatives to centralize procurement of drug and medical consumables are now covered by a legal provision which mandates Central authorities to coordinate the procurement under one system, to strengthen the management of funds under a coordinated and unified governance.
Reimbursement – NHSA shall organize evidence-based medical and economic evaluations of catalogues of drugs, medical consumables and medical services included in the scope of payments by BMI Basic Medical Insurance funds. It coordinates with ordinary review of NRDL National Reimbursement Drug List, and with Catalogue of Drugs.
DRIVERS FOR COMPANIES
The Law will come into force starting from Jan 1, 2027. It mandates NHSA National Healthcare Security Administration to formulate the “scope of payments” from BMI Basic Medical Insurance funds. Market-Access strategy: Companies aiming to have their product be reimbursed under BMI should be prepared for health economic evaluations conducted by the NHSA, by providing information on "true" and "differentiated" innovation through robust clinical and economic evidence to pass the evaluation and secure a favorable payment standard within the BMI system. Companies should also do efforts to coordinate with pre-consultation mechanisms under the current policies to further enhance the target of reimbursement.
AUTHOR
Andrea Sorgato - Managing Partner, HealthLawAsia