In China, the Million Medical product, which is generally defined as a high-limit and high-deductible reimbursement product, has become the most popular medical product since its launch in August 2016. Million Medical products have removed a lot of restrictions from the previous medical reimbursement products. For instance, medical reimbursement is no longer restricted to the listed items in the social health insurance catalogue, and the annual limit is much higher than before. Instead, Million Medical products reimburse all reasonable medical expenses, with a high limit, while keeping the premium affordable with a higher deductible.
While the Million Medical product has grown in popularity, with more and more insurers beginning to offer this option, its underwriting margin has been narrowing. This trend will likely continue into the future. More effort is needed to better manage the product and make it a more sustainable medical reimbursement product in China. Milliman’s Jiang Guanjun and Qiuwen Peng offer more perspective in this article.