China News Agency, Beijing, February 26 (Reporter Wang Enbo) The Notice of the General Office of the China Banking and Insurance Regulatory Commission on Further Regulating Matters Related to the Entrusted Management of Health Insurance was announced on the 26th. The CBRC has clearly strengthened supervision of such businesses and cancelled its investment function.
From an international perspective, entrusted management of health insurance is an integral part of a multi-level and diverse medical security system. In recent years, more and more Chinese enterprises and institutions have provided employees with health protection services in addition to basic medical insurance, and commissioned insurance companies to handle them, which has promoted such business development of insurance companies.
According to the relevant person in charge of the Personal Insurance Department of the China Banking Regulatory Commission, as of the end of 2018, 26 insurance companies in China have launched such businesses, covering 66.7 million people, and providing payment services for 10.77 million in total. The scale of entrusted management funds is about 34 billion yuan (RMB, Same below), the management fee was 720 million yuan, and the management fee accounted for about 2.1% of the entrusted funds.
However, the CBRC also stated that the health insurance entrusted management business market faces some potential risks, such as the fact that it is entrusted to manage wealth in the name of health protection, and engaged in vicious competition through management fees and price wars.
To this end, the above-mentioned "Notice" has reshaped the regulatory framework of the health protection entrusted management business, urged it to return to its business roots, supplement regulatory shortcomings, and prevent potential risks.
The "Notice" clearly states that insurance companies conducting health insurance entrusted management business shall meet the conditions for operating health insurance stipulated in the "Health Insurance Management Measures" and have branches or service cooperation agencies in the area where they are established. It is also stipulated that disease auditing and payment of fees, disability income loss auditing and payment of fees, nursing auditing and payment of fees, and health management services can be included in the entrusted matters.
It is worth noting that the "Notice" canceled the investment function of such businesses, stipulated that insurance companies must not provide entrusted funds with various forms of value-added guarantees, and systematically avoided the practice of entrusting financial management in the name of health insurance entrusted management. In view of the vicious competition in which the management fee is significantly lower than the cost in practice, the "Notice" requires that the management fee should cover all costs of the entrusted management business. It can also be floated according to the actual management cost, but the floating method should be included in the entrusted management contract. Listed. (Finish)