Medical insurance starts from 1998. From 65438 to 0988, China government began to reform the free medical system of government agencies and the labor insurance medical system of state-owned enterprises. From 65438 to 0998, the China Municipal Government promulgated the Decision on Establishing the Basic Medical Insurance System for Urban Employees, and began to establish the basic medical insurance system for urban employees throughout the country.

The basic medical insurance system in China adopts the mode of combining social pooling with individual accounts. The basic medical insurance fund shall, in principle, implement municipal co-ordination. The basic medical insurance covers all employers and their employees in cities and towns, and all enterprises, state administrative organs, institutions and other units and their employees must fulfill their obligations to pay the basic medical insurance premium.