Business · Companies · 2 hrs ago
China’s low-cost Huiminbao insurance faces a sustainability test
China’s Huiminbao plans offer low-cost health insurance through local schemes guided by government and run by commercial insurers.
They accept people regardless of age or existing health conditions, helping cover costs that basic public insurance may not pay and that private policies can exclude.
The schemes have recorded more than 200 million enrollments and are available in more than 30 provinces, but growth has slowed and some plans have been discontinued.
High deductibles can leave healthy customers with little to claim for routine medical costs, while people with existing conditions are more likely to renew.
That imbalance can increase insurers’ costs and lead them to reduce coverage, making the plans less attractive to both groups.
Experts recommend renewal rewards and tiered coverage to give people more choice while keeping healthy customers in the insurance pool.
Some 2026 plans have already lowered deductibles or increased reimbursement for customers who renew without making claims.
Huiminbao, a low-cost supplementary health insurance product in China, is facing questions about its long-term sustainability as enrolment growth slows and some plans are discontinued.
The plans are government-guided and sold by commercial insurers, with low premiums and few age or health restrictions.
They have reached more than 200 million enrolments, but high deductibles and limited reimbursement can make them less useful to healthy people.
Experts say the plans need to retain healthier customers in order to balance claims costs and keep coverage viable.
Proposals include renewal incentives, basic and upgraded coverage tiers, clearer policy terms and broader risk pooling.
- Who
- Local governments guide Huiminbao plans, which are underwritten by commercial insurers. Experts and policyholders are also discussed.
- What
- The low-cost insurance plans are facing a sustainability test as some products end and enrolment growth slows.
- When
- The plans have developed since Shenzhen launched the first one in 2015; the article reports current changes for 2026 coverage.
- Where
- Across China, where Huiminbao products have been launched in more than 30 provinces.
- Why
- High deductibles and limited benefits can reduce their appeal, especially for healthy people, while the loss of low-risk enrollees increases insurers’ claims pressure.
This story does not have two clearly opposing sides.
Shenzhen launched the first Huiminbao product in China.
The Huiminbao market entered a period of rapid expansion.
China had launched 313 Huiminbao products, according to a Fudan University report cited in the article.
Huiminbao coverage took effect in multiple regions, with some plans adjusting benefits to encourage healthy people to renew.
- Cumulative enrolments
- More than 200 million
- Market coverage
- More than 30 provinces
- Products launched
- 313 by the end of July 2025
- Products with coverage above 1 million yuan
- About 21.3%
- Products with reimbursement rates of 60% or less
- 74.56%
- Shanghai plan deductible reduction
- 1,000 yuan after two consecutive years without claims; 2,000 yuan after three years
1 source
What people are saying
惠民保有效衔接了基本医保与商业健康保险，填补了两者之间的空白地带
当下，惠民保发展的核心矛盾已从“有没有”转向“好不好”，从“能不能做出来”变为“能不能做下去
关键是扩大参保基数，通过优化设计将更多健康群体留在风险池内，并吸引新的健康群体加入风险池