“Jincheng Hui Medical Insurance” Launches in Lanzhou to Strengthen Multi-tiered Healthcare Security System
As a key component of the social security system, insurance was mentioned 14 times in this year’s Government Work Report. Deputies and members attending the Two Sessions also submitted proposals and motions focused on insurance coverage, with particular attention to new insurance products such as “Huiminbao” (city-specific supplemental medical insurance). Their efforts aim to build a multi-tiered protection system while jointly fostering a new pattern of sustainable development for inclusive insurance innovation.
Since last year, inclusive “Huimin” insurance has experienced explosive growth. From Guangzhou, Nanjing, and Chongqing to Changzhou and Chengdu, Huimin insurance has gained widespread popularity among the public. Recently, this trend has also swept into Lanzhou City.
On March 10, Lanzhou’s first inclusive supplementary medical insurance product, “Jincheng·Huiyibao,” was officially launched. It is currently the only government-guided and supported inclusive supplementary medical insurance project in Lanzhou that effectively integrates with basic medical insurance.
Specifically, starting from March 10, 2021, individuals enrolled in Lanzhou’s Basic Medical Insurance (including the Basic Medical Insurance for Urban Employees and the Basic Medical Insurance for Urban and Rural Residents) as well as employees covered by the Gansu Provincial Directly Administered Government Agencies and Public Institutions Employee Medical Insurance are eligible to enroll. The annual premium is only RMB 69, with a maximum coverage amount of RMB 2 million, providing comprehensive protection for hospitalization, outpatient services, and specialized drugs. The enrollment period ends on May 10, 2021.
This Huiminbao insurance product is jointly supported and guided by the Lanzhou Municipal Healthcare Security Administration in collaboration with relevant departments of the municipal government. It was co-developed by Beijing Yuanxin Huibao Technology Co., Ltd. (hereinafter referred to as “Yuanxin Huibao”) and insurance companies, and is positioned as a customized, inclusive supplementary medical insurance plan for Lanzhou City. The product is underwritten jointly by four insurers: PICC Property and Casualty Company Limited, Gansu Branch; China Pacific Property Insurance Co., Ltd., Gansu Branch; China Life Property & Casualty Insurance Company Limited, Gansu Branch; and Ping An Pension Insurance Company of China, Ltd., Gansu Branch.
("Jincheng·Huiyibao" Project Launch Ceremony)
Medical security is a major livelihood project concerning the health and well-being of the people. It has been highly valued by authorities at all levels, from central to local governments.
In 2020, the Central Committee of the Communist Party of China, the State Council, as well as provincial party committees and provincial governments, issued opinions on deepening the reform of the medical security system, making comprehensive arrangements for various reform measures. In February 2021, the Lanzhou Municipal Party Committee and Municipal Government studied and formulated the “Implementation Plan for Deepening the Reform of the Medical Security System in Lanzhou City,” which made specific arrangements for establishing a multi-tiered medical security system that provides universal coverage, integrates urban and rural areas, features clear rights and responsibilities, offers appropriate benefit levels, and ensures sustainability. The plan explicitly stated active support and guidance for commercial insurance institutions in implementing the “Jincheng·Huiyibao” project.
“The official launch of ‘Jincheng·Huiyibao’ plays a significant role in improving our city’s medical security policy framework, enhancing the level of medical security benefits, preventing low-income residents from falling into or returning to poverty due to illness, and alleviating the financial burden on basic medical insurance participants facing critical illnesses and high medical expenses. It provides an additional solid safeguard for the life safety and physical health of over 3 million insured residents across the city,” stated Xi Yingqi, Party Secretary and Director of the Lanzhou Municipal Healthcare Security Administration, at the launch ceremony.
Unlike typical commercial health insurance, Huimin Insurance primarily demonstrates its inclusive nature through low entry barriers, affordable premiums, and broad coverage scope.
“‘Jincheng Huiyibao’ features affordable pricing, low eligibility thresholds, high-coverage protection, and the option to pay premiums using the individual account balance of basic medical insurance. ‘Any participant in Lanzhou’s Basic Medical Insurance or employees enrolled in the Gansu Provincial Direct Government Agencies and Public Institutions Employee Medical Insurance Plan are eligible for coverage. There are no restrictions on age or occupation, no medical examination or health declaration is required, and there is no waiting period. Even individuals with hypertension, hyperglycemia, hyperlipidemia (the “three highs”), chronic diseases, or significant pre-existing conditions are eligible,’ introduced Dong Yi, Party Committee Member and Deputy General Manager of PICC Property and Casualty Company Limited, Gansu Branch.”
In terms of product design, “Jincheng·Huiyibao” also features numerous highlights. “The original intention behind the design of ‘Jincheng·Huiyibao’ is to provide an additional layer of protection for insured individuals, supplementing the triple safeguard of ‘basic medical insurance, critical illness insurance, and medical assistance,’” stated Zhao Ping, CMO of Yuanxin Hui Bao. Tailored to local medical insurance data in Lanzhou, the product closely aligns with Lanzhou’s social basic medical insurance system, offering supplementary coverage for medical expenses not covered by basic medical insurance policies. It includes RMB 500,000 in coverage for inpatient medical expenses within the medical insurance catalog, RMB 500,000 for out-of-pocket inpatient medical expenses, and RMB 1 million for 16 specific drugs listed in the product’s designated drug list, bringing the total coverage limit to RMB 2 million.
Compared with general commercial health insurance, Huiminbao involves more diversified participants. Local governments, insurance companies, and insurtech platforms are all motivated to develop Huiminbao into a practical, effective, and sustainable innovative payment solution for healthcare.
As the first government-guided, inclusive supplementary medical insurance product in Lanzhou City, “Jincheng Huiyibao” has not only received support from relevant government departments but also benefits from instant discounts under UnionPay Cloud QuickPass’s consumer welfare initiative, along with backing from institutions such as Huawei Technologies Co., Ltd.
With the rapid development of the health insurance market, where the compound annual growth rate has remained above 35%, both premium volume and claim payouts have been growing rapidly. However, in 2020, health insurance still accounted for less than 5% of total medical expenditure, highlighting an urgent need for commercial health insurance to fill this gap. Therefore, in designing Huiminbao (inclusive supplementary medical insurance) products, it is essential to both expand product coverage and broaden the scope of services.
In response, Yuanxin Huibao has provided an integrated solution encompassing specialty drug services, value-added health management services, technical support, and operational services. This initiative aims to establish a closed-loop service ecosystem connecting “healthcare providers–patients–pharmaceuticals–insurance,” collaborate with industry partners to build a comprehensive health ecosystem, and support the development of “Healthy Lanzhou 2030.” As a key component of Yuanxin Huibao’s core “Hui Min Bao” (Affordable Health Insurance) business segment, “Jincheng·Hui Yi Bao” will further promote the construction of China’s multi-tiered medical security system.
At the press conference, Yuanxin Huibao, together with four insurance companies, demonstrated its commitment to corporate social responsibility by donating a total of 5,000 “Jincheng·Huiyibao” policies to disadvantaged individuals, employees, public security officers, medical personnel who aided Hubei Province, and other relevant institutions or individuals.
(Donation Ceremony)
It is reported that the insurance period for “Jincheng·Hui Yibao” is one year, with the coverage effective from 00:00 on January 1, 2021, to 24:00 on December 31, 2021. From March 10 to May 10, residents of Lanzhou can enroll by following the official WeChat account of the “Lanzhou Municipal Healthcare Security Administration,” the “Jincheng·Hui Yibao” WeChat account, or scanning the enrollment QR codes provided by each underwriting insurance company.
As population aging deepens, a gap persists between the existing basic medical security system and commercial health insurance, making it difficult for low-income and elderly populations to mitigate health risks through individual means. As a form of supplementary medical insurance, Huimin Bao (City-Specific Supplementary Medical Insurance) not only enhances reimbursement levels under basic medical insurance but also includes coverage for specialty drugs akin to commercial health insurance, all at highly affordable premiums. These features suggest that Huimin Bao will serve as a long-term bridge between basic medical insurance and commercial health insurance, becoming an indispensable component of the social security system.
Supporting the development of inclusive medical insurance products inherently helps alleviate the burden on basic medical insurance and paves the way for future reforms. Therefore, as more cities begin to develop customized insurance plans, these products will continue to evolve and, guided by new regulatory frameworks, enter a trajectory of standardized and sustainable development.