Jinhui Bao Launches in Shanxi, Bolstering Multi-tiered Medical Security System
As a star product in the commercial health insurance sector, Huimin Insurance, characterized by its inclusive nature, has witnessed explosive growth. From Guangzhou, Nanjing, Huizhou, and Zhuhai to Foshan, Chengdu, and Zibo, Huimin Insurance has gained widespread popularity among the public. Recently, this “wave” has also swept across Shanxi Province.
On September 29, “Jin Hui Bao,” an inclusive supplementary medical insurance product covering the entire Shanxi Province and launched by the Shanxi Branch of PICC Property and Casualty Company Limited (hereinafter referred to as “PICC P&C Shanxi Branch”), was officially released and made available for purchase. Specifically, starting from September 29, 2020, all participants in Shanxi’s basic medical insurance could enroll by following the “Jin Hui Bao” WeChat official account or by downloading the Douyin short-video app and searching for “Jin Hui Bao.” The enrollment period lasted until November 30, 2020.
(“Jin Huibao” Product Launch Ceremony)
Unlike conventional commercial health insurance, Huimin Insurance primarily demonstrates its inclusive nature through low entry barriers, affordable premiums, and broad coverage scope.The newly launched “Jin Hui Bao” offers supplementary medical insurance coverage of up to RMB 3 million to basic medical insurance enrollees in Shanxi Province at an inclusive annual premium of RMB 59.
“As an inclusive supplementary medical insurance product, ‘Jin Hui Bao’ effectively integrates with Shanxi Province’s basic medical insurance. Compared with conventional commercial insurance, ‘Jin Hui Bao’ is positioned as an inclusive, city-customized supplementary medical insurance, truly embodying its ‘benefit-the-people’ attribute,” said Zhang Baohui, Secretary of the Party Committee and General Manager of PICC Property and Casualty Company Limited’s Shanxi Branch, at the press conference.“Jin Hui Bao” provides the people of Shanxi Province with more choices in medical coverage and health services through its affordable pricing, high-coverage benefits, and premium service quality.
(Zhang Baohui, Secretary of the Party Committee and General Manager of PICC Property and Casualty Company Limited, Shanxi Branch)
To be more specific,“Jin Hui Bao” provides coverage for out-of-pocket inpatient medical expenses and insurance costs for specified medications. The product has no waiting period, with no restrictions on age or occupation, and no medical examination is required. All participants in Shanxi Province’s basic medical insurance are eligible to enroll, except for individuals diagnosed with any of the 12 specified critical illnesses.
Furthermore, during the policy period, expenses incurred by the insured for the use of 18 specific drugs listed in the "Jinhuibao Specific Drug Catalog" due to illness shall be subject to an annual cumulative maximum reimbursement limit of RMB 1.5 million.While addressing the issue of “high medical costs” for citizens, it also resolved the problem of “difficulty in accessing medications,” thereby tangibly improving the level of health security for the people of Shanxi Province.。
“During the product development process, we drew on the experience and practices of other provinces and cities in implementing inclusive health insurance programs,” said Zhang Baohui. “The “Jin Hui Bao” product features four characteristics in terms of public benefit.。
First, the beneficiary population is broad., all participants in the basic medical insurance programs of Shanxi Province and its administered prefecture-level cities are eligible to purchase.Second, the underwriting criteria are lenient., no medical examination required, no health declaration needed, no waiting period, and no age restrictions.Third, the compensation package is highly competitive., for inpatient expenses within the scope of basic medical insurance reimbursement, "Jin Hui Bao" provides a coverage limit of RMB 1.5 million, with an additional RMB 1.5 million for special drug expenses, bringing the total coverage limit to RMB 3 million.Fourth, the principle of inclusiveness is strong., regardless of age, gender, or occupation, the uniform price is RMB 59 per person per year.
The launch of the “Jin Hui Bao” product undoubtedly aligns with the development trends of China’s health insurance sector. In March this year, the State Council issued the “Opinions of the Central Committee of the Communist Party of China on Deepening the Reform of the Medical Security System,” which clarified the overall reform framework of “1+4+2.”By 2030, a multi-tiered medical security system will be fully established, with basic medical insurance as the mainstay, medical assistance as the safety net, and complementary development of supplementary medical insurance, commercial health insurance, charitable donations, and mutual medical aid, thereby clarifying the systemic positioning of commercial health insurance.
Not only that, but from a regional perspective, Shanxi Province has continuously improved its medical security system in recent years. Social security mechanisms, including basic medical insurance, critical illness insurance, and medical assistance, complement each other, effectively reducing the financial burden of high-cost medical treatments for insured individuals. Nevertheless, when confronted with severe or catastrophic illnesses, insured individuals still face the dilemma of exorbitant medical expenses. Therefore,The public has a strong demand for commercial health insurance with inclusive attributes.
The participating entities in Huimin Insurance are more diversified than those in general commercial health insurance, typically involving three parties: the government, insurance companies, and platform companies.Given that Huimin Insurance possesses dual attributes of finance and healthcare, the participation of platform companies has become a key link in connecting medical resources.
As the technical service provider for “Jin Hui Bao,” Yuanxin Hui Bao leverages its professional “medical + pharmaceutical” capabilities to provide comprehensive support and services for the promotion and sales of the “Jin Hui Bao” product.. In terms of service capacity,Yuanxin Huibao has currently established in-depth collaborations with multiple medical companies., with service delivery capabilities not only in “genetic screening, health check-ups, overseas medical care, online consultations, medication services, and post-diagnosis management,” but alsoFor the existing market, refine users’ core needs and leverage the company’s professional capabilities in product integration and design.
(Peng Xuan, CEO of Beijing Yuanxin Huibao Technology Co., Ltd.)
““Jin Huibao” is another provincial-level customized inclusive supplementary medical insurance product under the Yuanxin Huibao service, following Hainan..” Peng Xuan, CEO of Yuanxin Huibao, told VCBeat that due to the inclusive nature of “Jinhuibao,” it needs to reach a broader population. “To this end, weOpted to collaborate with Douyin for promotional efforts..” Specifically, there are two reasons: first, Douyin boasts massive traffic, ensuring extensive reach; second, its algorithm and rich tagging system enable precise delivery of information to potential target audiences.
It is worth noting that,“Jin Hui Bao” is the first provincial-level Huiminbao to be launched in the region north of the Yangtze River.. Given the relatively low population density in Shanxi’s cities, PICC Property and Casualty Company Limited’s Shanxi Branch decided to simultaneously launch “Jin Hui Bao” across all 11 prefecture-level divisions in Shanxi Province to achieve broader population coverage.
“‘Jin Hui Bao,’ as a supplementary medical insurance plan exclusive to residents of Shanxi Province, has broken conventional practices of traditional commercial insurance, such as age restrictions, differentiated pricing, and the exclusion of individuals with pre-existing conditions.”Aims to establish a third layer of medical security that is highly complementary to the “Basic Medical Insurance + Critical Illness Insurance” framework..” Peng Xuan stated, “Jin Hui Bao” will help Shanxi Province further improve its multi-tiered medical security system, strengthen the foundation of public welfare safeguards, alleviate the financial burden of major illness medical expenses for residents of Shanxi, and further demonstrate important measures based on mutual assistance and solidarity.
Facing the next step,Yuanxin Huibao will continue to focus on empowering the health insurance sector, collaborating with insurers to develop flagship touchpoint products., actively innovating to address the challenges pharmaceutical companies face in out-of-hospital drug sales and designing payment solutions, while providing professional healthcare services to patients, with the aim of ensuring that every insurance policy can access superior medical and pharmaceutical services.
As Huimin Bao (city-specific supplemental medical insurance) expands across multiple cities, industry stakeholders are growing concerned about its true market potential and the operational challenges that may arise in the future. In response to these concerns, Peng Xuan, CEO of Yuanxin Huibao, highlighted three key aspects warranting attention.
First, in terms of market size,In 2019, China's total healthcare expenditure reached RMB 6.5 trillion, with basic medical insurance covering RMB 2.07 trillion. This implies that approximately RMB 4 trillion of healthcare spending was borne by individuals, indicating a substantial market size for commercial health insurance. Furthermore, in 2019, claims paid by commercial health insurance amounted to only RMB 127.1 billion, accounting for less than 2% of the total healthcare expenditure. Therefore, there remains significant headroom for market expansion.
Second, from an operational perspectiveCurrently, the underwriters of Huimin Bao (inclusive commercial health insurance) generally adopt two models: single-insurer underwriting and co-underwriting by multiple insurers. Specifically, single-insurer underwriting is typically provided by local branches of subsidiaries under an insurance group, or by large-scale local insurance companies. In contrast, co-underwriting usually involves collaboration between nationwide insurance companies and locally headquartered insurers with state-owned backgrounds. “This ensures that Huimin Bao has sufficient backing in terms of underwriting capacity.”
Third, Huiminbao will remain in the long term.. As population aging continues to deepen, a gap persists between the existing basic medical security system and commercial health insurance, making it difficult for low-income and elderly groups to mitigate health risks through individual means. As a form of supplementary medical insurance, Huiminbao not only enhances the reimbursement level of basic medical insurance but also covers specialty drugs similar to commercial health insurance, all while maintaining highly affordable premiums. These characteristics imply that"Huiminbao" will serve as a long-standing bridge between basic medical insurance and commercial health insurance, becoming an indispensable component of the social security system.
As the "dark horse" in the health insurance sector,The reason why "Huimin Bao" has triggered a strong market response is that it accurately identifies the market niche between basic medical insurance and commercial million-yuan medical insurance, thereby gaining favor from the government, insurers, and the public.As this trend sweeps north of the Yangtze River and is introduced in Shanxi Province in the form of “Jin Hui Bao,” it will undoubtedly provide the people of Shanxi with better options and services for healthcare coverage.
What stories will Huiminbao tell next? Let’s wait and see.