News Life and Health03 Jul 2024

China:Consumers allowed to pay for online purchases of non-prescription drugs via personal medical insurance plans

| 03 Jul 2024

People who pay for individual medical insurance cover in Beijing can purchase non-prescription drugs at designated pharmacies on e-commerce platforms Meituan and JD.com from 1 July, according to the capital city's medical insurance bureau.

Beijing joins Shanghai and Shenzhen in allowing holders of individual medical insurance to buy non-prescription medicines online, reported Yicai Global. Customers can opt to pay for the online purchases using their personal medical insurance accounts, but delivery and packaging fees are charged separately.

The goal is to reduce the cost of medicine. The National Healthcare Security Administration is taking action to curb high drug prices charged by pharmacies and is reining in spending on medicine. The online platforms offer price comparisons.

Between CNY50bn ($6.8bn) and CNY60bn worth of drugs are likely to be shifted through the online-to-offline model this year, industry players say. This figure could more than quadruple to reach CNY240bn once the scheme is fully rolled out.

Online-to-offline sales currently contribute about 10% of all medicine sales, but this could reach 50% once the programme is made fully available.

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