- China increased penalties on medical insurance; insurance premium rise.
- The new regulation clarifies legal liabilities for every part on the chain.
- China’s insurance premium income went up 7.8 percent year on year in Q1 of 2021.
- Insurance premium income reached 278.2 billion U.S. dollars.
China imposed harsher penalties for medical insurance fund fraud in a new regulation. The same will come into force starting Saturday.
Reports suggest that it is China’s first regulation on the supervision and management of medical insurance funds. The same has been circulated to further ensure security and promote the effective use of the funds.
Shi Zihai, deputy director of the National Healthcare Security Administration mentioned that the regulation clarifies legal liabilities for every part on the chain, including administrative organs responsible for healthcare security, designated medical institutions and the people under the medical insurance system, said.
According to the new regulation, malpractices including fraudulently using medical insurance funds may face a suspension of reimbursement through the network for three months to 12 months and penalties equal to up to five times of the amount obtained falsely.
While China’s insurance premium income was also reported to go up 7.8 percent year on year in the first quarter of 2021.
According to the China Banking and Insurance Regulatory Commission, premium income reached 1.8 trillion yuan (278.2 billion U.S. dollars) during the January-March period.
Lastly, by the end of March, the industry had combined assets totalling 24.3 trillion yuan, up 11.7 percent from a year earlier.