Compared with basic medical insurance, supplementary medical insurance includes enterprise supplementary medical insurance, commercial medical insurance, social mutual assistance and community medical insurance, which is a powerful supplement to basic medical insurance and an important part of multi-level medical security system. 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. Supplementary medical insurance fund is used for enterprises to participate in local basic medical insurance in accordance with the regulations, and the medical expenses paid by individual employees are appropriately subsidized in addition to the treatment paid by the basic medical insurance system for urban employees, so as to reduce the medical expenses burden of insured employees. The part of the supplementary medical insurance premium of the enterprise within 5% of the total wages can be directly charged from the cost, and it is no longer approved by the financial department at the same level. The supplementary medical insurance measures for enterprises should be linked with the local basic medical insurance system. Enterprises' supplementary medical insurance funds are used and managed by enterprises or industries in a centralized way, with separate accounts established and managed. They are used for medical expenses subsidies for employees and retirees with heavier personal burdens in the enterprise, and may not be included in the personal accounts of basic medical insurance, nor may they be established separately or used for other expenses of employees in disguise. The financial department and the labor and social security department should strengthen supervision and financial supervision over the management of supplementary medical insurance funds of enterprises to prevent misappropriation of funds and other irregularities. The actual use shall be implemented according to the regulations of the enterprise.

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