Commercial Insurance Covers Brain-Computer Interface for the First Time: Full Payment Chain Now Operational

` Commercial Insurance Covers Brain-Computer Interfaces for the First Time, Fully Integrating the End-to-End Payment Process `

On May 25, 2026, the city-customized commercial supplementary medical insurance “Shanghai Huibao 2026 Edition” was launched, introducing coverage for “brain-computer interface (BCI) surgical consumable expenses” for the first time. The policy provides a 30% reimbursement rate with a maximum coverage limit of RMB 150,000. It covers out-of-pocket costs for specific materials used in BCI surgeries during hospitalization, including implantable BCI hand motor function compensation systems (comprising BCI implants, neural signal transceivers, pneumatic glove control units, and passive rehabilitation gloves), implantable EEG electrode kits (including cortical electrodes), and related items. We believe that from the Healthcare Security Administration’s establishment of BCI billing codes in March 2025 to commercial insurance coverage in May 2026, the payment ecosystem for BCI has been fully integrated across the entire chain from surgical fees to consumable expenses. This signifies that BCI technology is genuinely advancing toward broader accessibility and commercialization.

Efficient UDI Coding and Procurement Platform Listing for Brain-Computer Interfaces: Accelerated Clinical Application of Innovative Medical Devices Expected to Become Standard Practice

The world’s first invasive brain-computer interface (BCI) medical device, Neuracle NEO, received market approval on March 13, 2026, and completed its procurement platform listing on March 24. It took merely ten days to complete the entire process—from medical insurance code assignment and inclusion in the medical consumables catalog to platform listing—effectively bridging the “last mile” from regulatory approval to clinical application. This milestone is the result of forward-looking policy planning, efficient local execution, proactive corporate engagement, and multi-stakeholder collaboration. Since the National Healthcare Security Administration (NHSA) launched information solicitation for innovative medical consumables such as BCIs in September 2025, the application and coding process for innovative products has entered a fast track. Thanks to efficient multi-party coordination, following the NHSA’s release of the BCI product catalog and coding system on March 23, Shanghai’s healthcare security authorities immediately conducted an expedited review via a green channel, included the product in the municipal medical insurance medical consumables catalog, and finalized its listing on the Sunshine Procurement Platform on March 24. We believe that the seamless transition from approval to clinical application for innovative products is poised to become routine, significantly accelerating the commercialization of BCI enterprises. Meanwhile, other innovative medical devices, such as surgical robots and artificial hearts, are also expected to benefit from this streamlined mechanism.

Closed-Loop Business Model Achieved; Investment and Financing Exit Channels Expected to Be Established

According to statistics from the China Academy of Information and Communications Technology (CAICT), cumulative global investment in the brain-computer interface (BCI) sector has reached nearly $10 billion as of April 2025. Since 2026, companies such as Stairway Medical, BrainCo, and Axoft have successively closed new funding rounds. We believe that with the expansion of commercial insurance coverage, the industry is establishing a closed-loop commercial model, and the underlying logic of investment and financing has shifted from forward-looking technological deployment to high-certainty industrial investment.

Additionally, BrainCo submitted its IPO application to the Hong Kong Stock Exchange in January 2026, with its listing hearing expected to be approved between June and July. If successfully listed, this will establish a secondary market exit mechanism for the sector. We believe that this will not only effectively streamline the "fundraising, investment, management, and exit" capital cycle and unlock liquidity for early-stage venture capital, but also accelerate the consolidation of long-term industrial capital, fully activate the synergy between the primary and secondary markets, and propel the brain-computer interface industry into a new phase of valuation repricing and commercial implementation.

2026: The First Year of Mass Production for Implantable Brain-Computer Interfaces, Chinese Production Lines Poised to Commence Operations Shortly

Jieti Medical’s MEMS production line for ultra-flexible neural electrodes is slated to scale up annual output of implantable ultra-flexible neural electrodes to 30,000 units. We expect it to be completed in 2026, which will lay the foundation for subsequent market launch, mass production, and commercial rollout. Given that Jieti Medical’s “Implantable Wireless Brain-Computer Interface System” has entered the Special Review Procedure for Innovative Medical Devices (the “Green Channel”), accelerated commercialization is anticipated. Naohu Technology’s “Super Factory” officially commenced construction in Ganjiang New District in January 2026, undertaking the mass production of China’s first “fully implantable, fully wireless, and fully functional” brain-computer interface system. Neuralink also announced in 2026 its plan to initiate large-scale production of BCI devices. With domestic and international implantable BCIs entering their inaugural year of mass production, we recommend closely monitoring the completion milestones of domestic implantable BCI production lines.

Target beneficiaries: Xinwei Medical, Xiangyu Medical, Meihao Medical, Medprin Medical, Sanbo Brain Hospital, Lepu Medical, Aipeng Medical, Chuangxin Medical, Biotest Biotech, Chengyitong, Beiyikang, etc.

Risk Warning: Commercialization may fall short of expectations; technological iteration risks; long-term safety and stability risks.