An article from The Epoch Times reports that China’s medical insurance fund is facing increasing financial pressure, prompting some local governments to use lottery revenues to help fill gaps in the healthcare insurance system. However, analysts caution that lottery income is unlikely to provide a stable or sustainable source of funding.
The report notes that China’s basic medical insurance fund recorded revenue of about 3.48 trillion yuan (US$ 500 billion) in 2024, while expenditures reached about 2.97 trillion yuan (US$ 430 billion), with spending rising faster than income. Interviewees cited in the article attribute the growing financial strain to rising demand for healthcare services, more frequent hospital visits, increased treatment for chronic diseases, and possible over-treatment in some hospitals. In some cities, including Beijing and Tianjin, medical insurance funds have reportedly experienced deficits or required fiscal subsidies to maintain operations.
According to the article, some regions have begun transferring a larger share of public welfare funds from sports and welfare lotteries into social security programs to support healthcare spending. One source said the proportion allocated to such purposes has reportedly increased from around 10 percent to about 20 percent. Analysts warn that this approach may not be sustainable, as lottery sales have slowed in recent years, making the revenue stream uncertain. At the same time, China’s rapidly aging population—now exceeding 200 million people aged 65 or older—is expected to place increasing long-term pressure on the country’s healthcare insurance system.
Source: Epoch Times, March 4, 2026
https://www.epochtimes.com/gb/26/3/4/n14711019.htm