China clamps down on medical insurance fraud

Fraudsters may face a suspension of reimbursement for up to a year.

China has toughened its regulation on government-run medical insurance, imposing harsher penalties for fraud effective 1 May, reports Xinhua News Agency.

Being the first regulation on the supervision of medical funds, it is touted to ensure security and the effective use of funds.

Using medical insurance for fraud may face a suspension of reimbursement through the network for three to 12 months and penalties up to five times of the amount.

The regulation was unveiled on 15 January in a State Council decree. It clarifies legal liabilities for every part of the chain, including administrative organs responsible for healthcare security, designated medical institutions and the people under the medical insurance system, said Shi Zihai, deputy director of the National Healthcare Security Administration.