With ever-increasing demand for healthcare services, medical expenditure in China has surged in recent years. However, the means of funding this expenditure have not been updated over this period. As a result, although the net balance of the Basic Medical Insurance (BMI) fund is still growing, the growth rate of income is now less than that of expenditure.
The increasing pressure on the BMI fund will spur development of commercial health insurance in China, and it will bring great changes to China's healthcare market. Given the sheer scope, the full complement of stakeholders in the industry will play a role in the changes, resulting in substantial activity to seize market opportunities as they arise in the months and years ahead.
Also read the latest issues of our key findings and insights