New Policy-based Incentives for Breakthrough Medical Devices in China

On 8 December, Zhejiang Healthcare Security Administration issued a notice on managing and encouraging the breakthrough medical technology.

The notice pointed out that eligible innovative medical technology can be included in the scope of incentives for health insurance payment after declaration and identification.

In addition to the quantifiable conditions of breakthrough medical technology, some other subjective conditions, including technology innovation or effect of greater enhancement, need to be determined by experts.

The notice announced incentives for eligible breakthrough medical technology such as improve the total amount of incentives and improve the incentive method.

Along with the implementation of DRG, medical institutions began to do the treatment in different methods. In some complex cases, the use of high-priced new technologies is likely to be constrained. Based on the consideration of clinical quality and efficiency, as well as encouraging drug and device companies to adhere to innovation, China has made positive adjustments on the policy.

In 2022, National Healthcare Security Administration had pointed out that they would guide localities to timely incorporate eligible breakthrough medical consumables into the scope of medical insurance payment in accordance with procedures. 

In July 2022, Beijing Healthcare Security Administration issued a notice deciding to implement the management method of payment except for new drugs and new technologies for CHS-DRG payment on a trial basis.

In May 2023, Beijing Healthcare Security Administration issued a notice, clearly put forward to continue to deepen the reform of the multi-dimensional composite health insurance payment method.

In July 2023, Shanghai Healthcare Security Administration issued a document proposing to steadily expand the medical insurance payment scope for medical service items and medical consumables, and to give priority coverage for innovative drugs and devices.

In addition to the payment level, the approval and launch of breakthrough medical devices is also accelerating.

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