China’s Local Medical Insurance Coffers Bled Dry on Rising Costs, Covid

Local medical insurance funds in some Chinese regions ran deficits in 2021 due to rising health care costs and financial pressure stemming from the now abandoned “zero-Covid” policy, according to the National Healthcare Security Administration (NHSA).

In a statement published last month, the administration that oversees China’s medical insurance system also said the national “resident medical insurance” fund has been in “tight balance” in recent years, meaning it has run only a small surplus and is at risk of falling into deficit at any time.