China’s pilot tax benefit plan hopes to expand health insurance

Global Business

The Chinese government is launching a pilot program that includes preferential tax policies. China hopes the new move will support commercial health insurance to meet people’s diversified needs. Hu Xiaocen filed this report. 


  • Consumers who spend more than 2,400 yuan on commercial health insurance policies per year will now only pay individual taxes on income above 3,700 yuan per month, instead of 3,500 yuan. Individuals whose income is below the 3,500 yuan per month pay no tax in any case. The new policy is expected to encourage consumers to purchase individual health policies in addition to their standard government benefits.
  • The 2,400 yuan tax credit is low compared to that allowed in other countries, and so improvements will have to be made over time. Currently, just over one percent of total medical costs in China are paid by commercial health insurance. The figure is over 10 percent in Germany and France, and reaches 37 percent in the US

Dr. Lizheng Shi discusses health insurance in China

For more on China’s health insurance industry, CCTV America’s Asieh Namdar interviewed Dr. Lizheng Shi. He is an Associate Professor at Tulane University School of Public Health and Tropical Medicine.