Supplementary medical insurance for enterprises is a form of supplementary medical insurance encouraged by the state and organized or participated by enterprises independently on the basis of participating in urban basic medical insurance. The term of supplementary medical insurance for enterprises is one year.

Enterprises that participate in various social insurances according to regulations and pay social insurance premiums in full and on time may decide whether to establish supplementary medical insurance. The supplementary medical insurance fund is used for enterprises to participate in local basic medical insurance according to regulations, and in addition to the treatment paid by the basic medical insurance system for urban employees, appropriate subsidies are given to the medical expenses paid by individual employees to reduce the burden of medical expenses for insured employees. The part of enterprise supplementary medical insurance premiums within 5% of the total wages can be directly charged from the cost, and is no longer approved by the financial department at the same level. Enterprises and institutions with basic medical insurance can establish supplementary medical insurance. The supplementary medical insurance measures for enterprises should be linked with the local basic medical insurance system. The supplementary medical insurance fund for enterprises is used and managed by enterprises or industries in a centralized way, and is managed by separate accounts. Medical expenses subsidies for employees and retirees with heavy personal burdens in enterprises shall not be included in the personal accounts of basic medical insurance, nor shall they be set up separately or used for other expenses of employees in disguise. The financial department and the labor and social security department should strengthen the supervision and financial supervision over the management of supplementary medical insurance funds of enterprises, and prevent illegal acts such as misappropriation of funds.