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China Cuts New Path for Commercial Insurance Holders to Get Pricey Drugs

Published: Jul. 2, 2025  1:56 p.m.  GMT+8
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The initiative addresses long-standing challenges in a market where commercial health insurance has operated in a gray area between health care and financial regulators. Photo: AI generated
The initiative addresses long-standing challenges in a market where commercial health insurance has operated in a gray area between health care and financial regulators. Photo: AI generated

China’s top health care security regulator has unveiled a new framework to help patients access expensive innovative drugs, establishing a formal list that encourages commercial health insurance to cover medicines deemed too costly for the state’s basic plan.

The measures, released July 1 by the National Healthcare Security Administration (NHSA), aim to bridge the gap between the high price of cutting-edge pharmaceuticals and the budget constraints of the national insurance fund. At the core of the policy is a new Commercial Health Insurance Innovative Drug List, designed to operate alongside the country’s primary reimbursement system.

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  • China’s NHSA launched a "Commercial Health Insurance Innovative Drug List" (Category C) on July 1, 2024, to help patients access costly innovative drugs outside basic coverage.
  • The policy enables price negotiations between insurers and drugmakers, offers exemptions from some price controls, and enhances price confidentiality to boost participation.
  • Criteria for drug inclusion are still pending, but benefits include exclusion from DRG bundles and a focus on real-world studies for reimbursement decisions.
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Who’s Who
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What Happened When
2018:
NHSA was established.
By May 2025:
NHSA had successfully negotiated prices for 149 innovative drugs with state funds paying over 410 billion yuan (about $56 billion) for them.
Before July 1, 2025:
The rollout of the new initiative was initially expected in April 2025 but was delayed due to negotiations among stakeholders.
July 1, 2025:
National Healthcare Security Administration (NHSA) released new measures and unveiled the 'Commercial Health Insurance Innovative Drug List.'
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