Major Restructuring: State Council Announces Institutional Reform Plan, Abolishes NHFPC, Medical Reform Office, and CFDA; Establishes National Healthcare Security Administration

VCBeat (WeChat ID: vcbeat), March 13 – Today, the State Council Institutional Reform Plan was submitted to the First Session of the 13th National People’s Congress for deliberation.

According to the plan, adjustments to institutions involved in healthcare industry management and supervision include:

Establish the National Health Commission.The National Health and Family Planning Commission is no longer retained. The Office of the Leading Group for Deepening the Reform of the Medical and Healthcare System under the State Council is no longer established.

While establishing a new department, the National Working Commission on Aging will be retained, with its daily operations undertaken by the National Health Commission. The China National Committee on Aging, previously under the interim administration of the Ministry of Civil Affairs, will now fall under the interim administration of the National Health Commission. The National Administration of Traditional Chinese Medicine will be administered by the National Health Commission.

Establish the State Administration for Market Regulation.The State Administration for Industry and Commerce, the General Administration of Quality Supervision, Inspection and Quarantine, and the China Food and Drug Administration are no longer retained.

The State Administration for Market Regulation is primarily responsible for the comprehensive supervision and administration of the market, unifying the registration of market entities and establishing mechanisms for information disclosure and sharing, organizing comprehensive law enforcement in market regulation, undertaking unified anti-monopoly law enforcement, regulating and maintaining market order, implementing the strategy of strengthening the country through quality, overseeing the safety supervision of industrial product quality, food safety, and special equipment, and uniformly managing measurement standards, inspection and testing, and certification and accreditation.

State Councilor Wang Yong stated that, given the special nature of drug regulation,A separate National Medical Products Administration was established, administered by the State Administration for Market Regulation. Market supervision is implemented through a tiered management system, with drug regulatory agencies established only at the provincial level. Supervision of drug distribution and sales activities is uniformly undertaken by municipal and county-level market supervision departments.

Establish the National Healthcare Security Administration.The plan indicates that the responsibilities for basic medical insurance and maternity insurance for urban employees and urban residents under the Ministry of Human Resources and Social Security, the responsibilities for the New Rural Cooperative Medical Scheme under the National Health and Family Planning Commission, the responsibilities for drug and medical service price management under the National Development and Reform Commission, and the responsibilities for medical assistance under the Ministry of Civil Affairs will be integrated to establish the National Healthcare Security Administration as an institution directly under the State Council.

The primary responsibilities of the National Healthcare Security Administration include: formulating policies, plans, and standards for medical security systems such as basic medical insurance, maternity insurance, and medical assistance, and organizing their implementation; supervising and managing relevant medical security funds; improving the national platform for management and expense settlement of cross-regional medical care; organizing the formulation and adjustment of pricing and charging standards for pharmaceuticals and medical services; formulating policies for centralized tendering, procurement, and bidding of pharmaceuticals and medical consumables, and supervising their implementation; and supervising and managing the service conduct and medical expenses of healthcare institutions included within the scope of medical insurance coverage.

Regarding this adjustment, State Councilor Wang Yong stated that the aim is to improve the unified basic medical insurance system for urban and rural residents and the critical illness insurance system, continuously enhance the level of medical security, ensure the rational use and safe, controllable management of medical insurance funds, coordinate and advance the “three-medical linkage” reform involving healthcare services, medical insurance, and pharmaceuticals, and better guarantee access to medical care for those in need.

Sources: The Paper, China Business Journal