Core Points - The 2025 National Medical Insurance Drug List adjustment has officially begun, with a focus on the newly established commercial health insurance innovative drug list [1][3] - The commercial health insurance innovative drug list aims to include high-innovation, clinically valuable drugs that cannot be included in the basic list due to their cost, thereby enhancing the multi-tiered medication security system [3][4] - The adjustment process includes a dual-track application for both the basic medical insurance and the commercial health insurance innovative drug lists, providing clear access pathways for eligible drugs [10][11] Summary by Category Policy Changes - The National Medical Insurance Bureau has initiated the adjustment process for the 2025 drug lists, allowing eligible applicants to submit online applications from July 11 to July 20 [3][10] - The new commercial health insurance innovative drug list is a significant step in integrating commercial health insurance into the national drug list system, enhancing the accessibility of innovative drugs [4][11] Focus Areas - The 2025 adjustment will prioritize areas with insufficient basic coverage, such as pediatric and rare disease medications, to address clinical needs [6][10] - The commercial health insurance innovative drug list serves as a supplement to the basic insurance list, potentially covering innovative drugs that are currently not reimbursed [6][7] Market Impact - The introduction of the commercial health insurance innovative drug list is expected to improve the effectiveness of commercial health insurance and provide a transitional solution for high-priced innovative drugs [7][11] - The adjustment mechanism has evolved since 2018, with the proportion of new drugs listed in the insurance directory increasing significantly, from 32% in 2019 to 98% in 2024 [8]

Core Viewpoint - The adjustment of the National Medical Insurance Drug List for 2025 marks a significant shift towards supporting innovative drugs, particularly through the introduction of a commercial insurance innovation drug directory, which opens new payment pathways for high-value innovative drugs [1][5][6]. Group 1: Policy Changes - The National Healthcare Security Administration (NHSA) has published a series of documents outlining the adjustment plan for the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug List, as well as the Commercial Health Insurance Innovation Drug Directory [1][3]. - The new commercial insurance directory focuses on high-innovation, clinically valuable drugs that significantly benefit patients but cannot be included in the basic directory due to their high costs [1][5]. - The adjustment process includes an online application system, with a submission period from July 11 to July 20, and a review phase from August to September, differing from previous years by eliminating the need for paper submissions [2][3]. Group 2: Market Impact - The introduction of the dual-track application system for both basic medical insurance and commercial insurance is expected to enhance the efficiency of market access for innovative drugs [6][7]. - The proportion of new drugs listed in the insurance directory has increased significantly, from 32% in 2019 to 98% in 2024, reflecting the impact of the new policies [2][3]. - The commercial insurance directory aims to address the challenges of high-priced innovative drugs, providing a crucial market-based payment channel outside of the basic medical insurance [5][6]. Group 3: Future Outlook - The dynamic adjustment mechanism for the drug directory is expected to be updated annually, with a focus on meeting unmet medical needs for new drugs [7][8]. - The emphasis on differentiated pricing strategies and flexible renewal conditions is anticipated to improve the market access for innovative drugs [7][8]. - The dual-track system is seen as a key strategy for deepening healthcare reform and supporting high-quality development in the pharmaceutical industry [5][6].

Core Viewpoint - The National Healthcare Security Administration (NHSA) has officially initiated the adjustment application process for the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance drug catalog, along with a newly established commercial health insurance innovative drug catalog [1][2]. Group 1: Policy Implications - The inclusion of commercial health insurance in the national drug catalog system marks a significant breakthrough in China's multi-tiered medical security system, providing a regulatory foundation for commercial health insurance to enhance the accessibility of innovative drugs [5]. - The new commercial insurance catalog emphasizes a negotiation mechanism centered on information symmetry and professional support, which is crucial for collaboration between pharmaceutical companies and insurance providers regarding drug value recognition, pricing logic, and risk assessment [6]. Group 2: Innovative Drug Coverage - The "2025 China Innovative Drug and Medical Device Multi-Payment White Paper" indicates that currently, disease insurance accounts for 50% of commercial insurance payouts for innovative drugs, with million medical insurance at 22%, and other types making up the remainder [7]. - The key to designing products is to incorporate innovative drugs into a "sustainable protection structure" rather than treating them as merely high-priced medications [7]. Group 3: Recommendations for Improvement - Industry experts suggest focusing on three areas: introducing real-world evidence and stratified population data for better identification of payee groups, creating a combination of "basic insurance + commercial insurance + pharmaceutical company co-payment," and standardizing and automating the process from drug catalog to claims rules through a platform mechanism [7]. - There is a call for enhancing patient experience, process transparency, and claims efficiency as part of the catalog evaluation criteria to ensure that the catalog is accessible, implementable, and efficient in claims processing [8].

Core Viewpoint - China's pharmaceutical innovation is undergoing a historic transformation, driven by the collaboration of medical insurance, healthcare, and pharmaceutical sectors, aiming to shift from a "generic drug powerhouse" to an "innovative drug stronghold" [1] Group 1: Policy Measures - The National Healthcare Security Administration and the National Health Commission released measures to support high-quality development of innovative drugs, marking a significant step in China's healthcare strategy [1][2] - A series of policy documents were issued to establish a pricing negotiation process for innovative drugs, indicating a strategic arrangement for a multi-tiered medical security system [2] Group 2: Market Dynamics - In 2024, China's basic medical insurance fund had a total income of 34,809.95 billion yuan and total expenditure of 29,675.92 billion yuan, with commercial health insurance covering less than 8% of innovative drug costs [3] - The innovative drug market in China is projected to reach 1,620 billion yuan, highlighting the underutilization of commercial health insurance in supporting innovative drug development [3] Group 3: Insurance and Pharmaceutical Collaboration - The guidelines for the insurance directory focus on "clinical value-cost effectiveness," encouraging pharmaceutical companies to shift from "Me-too" to "First-in-class" drug development [4] - The establishment of a commercial health insurance directory for innovative drugs aims to alleviate the financial burden on basic medical insurance while providing new payment channels for innovative drugs [4][5] Group 4: Benefits of the New Framework - The new insurance directory benefits pharmaceutical companies by expanding patient access and accelerating capital recovery for further innovation [5] - Commercial insurance companies can leverage shared information from medical insurance to expand their health insurance business at lower costs, ultimately benefiting patients by reducing medical expenses [5] Group 5: Future Directions - The dynamic adjustment of the commercial health insurance directory and pricing mechanisms represents a process of balancing interests among various stakeholders, including patients, pharmaceutical companies, and insurance providers [6] - The integration of medical insurance and commercial health insurance is expected to evolve towards a collaborative regulatory framework, enhancing the overall healthcare system in China [8]

Group 1 - Ant Group and China Pacific Insurance signed a strategic cooperation agreement to innovate services using Alipay's commercial insurance code, aiming to enhance the multi-tiered medical security system [1] - New products such as "Tai Xiang Bao·免健告医疗险" were launched, allowing users to experience direct compensation without upfront payments or complicated claims processes [1] - The aging population and increasing chronic diseases in China create a pressing need for innovative commercial insurance to fill gaps between basic medical insurance and traditional commercial insurance [1] Group 2 - The national push for orderly integration of commercial health insurance with basic medical insurance is accelerating, exemplified by the launch of the "医保+商保" clearing settlement center [2] - Over 1.2 billion users have activated the national medical insurance code, with over 700 million using it through Alipay, making it the largest third-party service platform for the National Medical Insurance Bureau [2] - The insurance industry is expected to leverage a one-stop platform to provide comprehensive health coverage through various resources, including government-supported health insurance and commercial health insurance [3]

Core Viewpoint - The draft of the Medical Security Law has been officially presented, aiming to establish a comprehensive legal framework for medical security in China, addressing the fragmented nature of existing regulations and enhancing the management of medical security funds and services [1][2][3]. Group 1: Legislative Background - The need for a cohesive legal framework in the medical security sector has been recognized, with a legislative goal established in 2019 to create one law and several regulations to address the current fragmented legal landscape [2]. - The Medical Security Law has been included in the legislative work plans of the National People's Congress (NPC) for 2021, 2022, and 2023, indicating a sustained commitment to this initiative [2]. - Local legislative efforts have also been made, with provinces like Zhejiang, Jiangsu, and Shanghai enacting their own medical security regulations in recent years [2]. Group 2: Draft Structure and Content - The draft consists of seven chapters covering the medical security system, fund management, service optimization, supervision, and legal responsibilities, reflecting a consensus between central and local legislative bodies [3][4]. - The current draft has reduced content compared to the 2021 consultation draft, omitting significant reforms in medical security, such as centralized procurement of medical supplies [5]. Group 3: Recommendations for Improvement - Experts suggest that the draft should incorporate established legislative goals and include provisions for important reforms like medical payment methods and long-term care insurance [6][7]. - The draft should also enhance the sections on medical services and management services, separating them into distinct chapters for clarity [6]. - There is a call to include provisions for data sharing and protection of personal information in the context of medical security, emphasizing the importance of data in the healthcare sector [7]. Group 4: Enforcement and Oversight - Recommendations have been made to strengthen the enforcement of medical security laws and the establishment of regulatory bodies to oversee the use of medical security funds [8].

Core Insights - The pharmaceutical industry, particularly the innovative drug sector, is undergoing significant changes in both payment and demand sides after a four-year bear market, leading to a revolution in industrial upgrading [1][2]. Pricing Dynamics - The National Healthcare Security Administration (NHSA) is providing more pricing flexibility for innovative drugs, with price reductions during negotiations narrowing from 60%-80% to around 30% for PD-1 inhibitors, and allowing price retroactivity to cover R&D costs [1][2]. - A new market exclusivity system for innovative drugs grants three to five years of price protection for first-in-class drugs, stabilizing return expectations [1]. Clinical Trial and Approval Process - The approval process for clinical trials for innovative drugs has been expedited, reducing the review period from 60 working days to 30, and the average time for market application approval has been shortened to 235 days, facilitating faster commercialization [2]. Payment System Expansion - The introduction of DRG 2.0 and prepayment systems is expected to alleviate financial pressure on medical institutions, helping maintain stable cash flow between healthcare providers and upstream manufacturers [2]. - The financial support from the government is evident, with 63% of the 2024 resident health insurance contributions coming from fiscal subsidies, which have been consistently above 60% and are increasing annually [2]. Commercial Insurance Development - The development of commercial insurance is crucial for a multi-tiered medical security system, addressing the previous dominance of public health insurance and the tight balance in resident health insurance [3]. - Recent initiatives from the NHSA aim to enhance commercial insurance through data sharing and the establishment of a new innovative drug directory, which could alleviate payment pressures for innovative drugs in the long term [3]. Future Outlook - The synergy between supply-side technological upgrades and demand-side payment reforms is expected to create a positive feedback loop, positioning the Chinese innovative drug industry for sustainable growth and improved fundamentals [3].

Group 1 - The Hang Seng Innovative Drug ETF (159316) has increased by 3.33% as of July 3, 2025, with a turnover rate of 100.36% and a transaction volume of 440 million yuan, indicating active market trading [1] - The Hang Seng Innovative Drug ETF closely tracks the Hang Seng Hong Kong Stock Connect Innovative Drug Index, which serves as a "barometer" for pure innovative drug companies in the Hong Kong market, showing a significant performance increase with a 96.14% rise over the past year as of July 2, 2025 [1] - On June 30, the Hang Seng Index Company announced revisions to the index compilation scheme, explicitly excluding CXO companies (Contract X Organization), which includes Contract Research Organizations (CRO), Contract Manufacturing Organizations (CMO), and Contract Development and Manufacturing Organizations (CDMO), thereby focusing solely on innovative drug companies [1] Group 2 - The National Healthcare Security Administration (NHSA) and the National Health Commission issued measures on July 1 to support the high-quality development of innovative drugs, emphasizing full-chain support for innovative drug research and development, market access, hospital usage, and multi-payment systems [2] - The establishment of a commercial insurance innovative drug directory is expected to clarify the boundaries of basic medical insurance, allowing for more development space for commercial health insurance and providing stronger economic support for the development of innovative drugs [2] - Guoyuan Securities believes that the inclusion of the commercial insurance innovative drug directory marks an important step for commercial insurance in the multi-tiered medical security system, predicting that commercial insurance will play a greater role in supporting high-priced innovative drugs and medical devices [2]

Core Insights - The "Medical Insurance + Commercial Insurance" clearing and settlement center has officially launched nationwide, with a pilot program at Peking Union Medical College Hospital enabling instant reimbursement services through Alipay [1][3] - The center aims to address common pain points in commercial health insurance, such as complex reimbursement processes and long wait times, by allowing patients to complete settlements without upfront payments [3][4] Group 1: Industry Impact - Commercial health insurance is a crucial component of a multi-tiered medical security system, addressing diverse healthcare needs of the public [3] - The launch of the clearing center represents a significant milestone in the development of China's multi-tiered medical security system [4] Group 2: Technological Innovation - The center utilizes Ant Group's secure data technology to enable efficient data flow while ensuring compliance and preventing data leakage [4] - The integration of national medical insurance data allows for precise allocation of responsibilities between medical insurance and commercial insurance, enhancing the reimbursement experience [3][4] Group 3: Future Developments - Ant Group plans to deepen collaborations with insurance companies to optimize service experiences, with the commercial insurance code expected to cover more insurers and products in the future [4] - Currently, the Alipay commercial insurance code has partnered with over 20 health insurance products from various companies, benefiting over ten million users [4]

Core Points - The release of two significant documents by the National Medical Insurance Administration and the National Health Commission marks a pivotal moment for the commercial health insurance sector in China, particularly regarding innovative drug pricing and inclusion in insurance directories [2][4][12] Group 1: Policy Changes - The newly published "Measures to Support the High-Quality Development of Innovative Drugs" indicates that the settlement prices for drugs in the commercial health insurance innovative drug directory will be determined through "consultation" rather than "negotiation" [7][21] - The "Work Plan for Adjusting the National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Directory and the Commercial Health Insurance Innovative Drug Directory by 2025" outlines a basic process for price consultation, although specific details remain to be finalized [3][19] - The commercial health insurance innovative drug directory, previously referred to as the "Category B Drug Directory," has been officially announced, and its first version will be developed in conjunction with the 2025 national negotiations [4][5] Group 2: Role of Insurance Companies - Insurance companies will have a significant decision-making role in the development of the commercial health insurance innovative drug directory, with the National Medical Insurance Administration emphasizing the importance of their participation in various stages, including expert reviews and price consultations [13][27] - The transition from "negotiation" to "consultation" regarding pricing has led to mixed reactions, with some industry insiders perceiving it as a step back for the National Medical Insurance Administration [14][15] - The final decision on whether a drug will be included in the directory and its pricing will involve a collaborative process with input from insurance experts and the National Medical Insurance Administration [11][17] Group 3: Pricing Mechanism - The pricing mechanism for drugs included in the commercial health insurance innovative drug directory will involve expert assessments and on-site price consultations, with successful negotiations leading to inclusion in the directory [17][20] - The current framework indicates that the specifics of the price consultation rules and agreements will be determined after soliciting opinions from relevant parties [19][31] - The National Medical Insurance Administration aims to ensure that different insurance companies do not face varying prices for the same drugs, promoting a unified "consultation price" for the directory [20][26] Group 4: Market Implications - The commercial health insurance innovative drug directory is expected to provide a structured approach to pricing and inclusion of innovative drugs, potentially leading to a more standardized pricing model across the sector [25][28] - The directory's implementation is seen as a strategic move to enhance the market for commercial health insurance, despite the current limited uptake of such insurance products among the population [24][30] - The National Medical Insurance Administration plans to support insurance companies through data sharing, synchronized settlements, and regulatory collaboration to facilitate the smooth operation of commercial health insurance [28][29][30]