The Beijing Municipal Medical Insurance Bureau has adjusted the management of Urban Employee Basic Medical Insurance (UEBMI) accounts, effective September 1. Employee contributions to Basic Medical Insurance (BMI) will now be fully allocated to personal accounts, while employer contributions will go to unified accounts. Retirees will receive a fixed allocation from unified accounts, equivalent to about 2% of local average basic pension benefits.
Policy Details
The reform, based on a State Council edict from April 2022, aims to enhance outpatient mutual aid guarantees. Unified accounts will cover general outpatient expenses for chronic, special, and common illnesses, with reimbursement starting at 50%. Benefits will improve as unified account capacity grows. Individual accounts can also fund family members’ medical expenses.
Broader Impact
Pharmacy Market: Industry data shows China’s 2021 pharmacy retail market reached RMB 491.6 billion, with medical insurance accounting for 42% of revenues. Analysts predict the reform may reduce pharmacy revenues by 10% and net profits by 3%, while others expect increased sales for chronic disease drugs.
DTP Expansion: Retailers are establishing DTP pharmacies near hospitals to support prescription drug sales. Pharmaceutical firms and “Internet + medicine” companies are rapidly scaling their DTP businesses.
National Context
The State Council’s May 2022 document outlined tasks for deepening healthcare reforms, including promoting UEBMI outpatient planning. A differentiated payment policy will cover frequent outpatient expenses in primary institutions, with unified fund payments for common diseases.-Fineline Info & Tech
