China is revolutionizing its healthcare system by upgrading cross-regional payment methods, making medical services more accessible and affordable for millions. The National Healthcare Security Administration (NHSA) announced that 77% of the country’s coordinated regions now offer instant settlement of basic medical insurance funds for medical institutions.
In China, a coordinated region refers to designated administrative areas—such as provinces, municipalities, or counties—that participate in a unified medical insurance coordination mechanism. This system aims to integrate healthcare resources, standardize policies, and streamline cross-regional medical services and insurance reimbursements.
Since the reform, a staggering 300.1 billion yuan (approximately $41.7 billion) has been disbursed in medical insurance funds. This move alleviates the financial strain on both patients and healthcare providers by eliminating the need for advance payments.
Back in January 2025, the NHSA initiated a significant overhaul with the goal of achieving instant settlement of basic medical insurance funds in 80% of coordinated regions by the end of the year. As of May 6, 300 coordinated regions have activated this instant settlement mechanism, covering over 361,800 designated medical institutions.
To optimize fund management, these regions have adopted flexible approaches based on weekly or monthly time frames. This accelerates fund distribution and stabilizes cash flow for healthcare providers. The strategy not only ensures predictable funding for medical facilities but also reduces financial pressure on insured patients, guaranteeing timely access to care.
This reform marks a significant step toward a more unified and efficient healthcare system in China, promising better services for residents nationwide.
