Jinwu Financial News | According to Huatai Securities Research Report, the DRG/DIP payment reform, which aims to improve the efficiency of the use of health insurance funds, is progressing steadily, changing the behavioral pattern of medical institutions. Hospitals' willingness to control expenses has increased, and it is the best solution to complete the inpatient diagnosis and treatment process with pharmaceutical devices in the medical insurance catalogue under a limited budget. For consumers who can afford to pay, purchasing “independent” commercial medical insurance (commercial insurance) to obtain pharmaceuticals outside the medical insurance list may become a strong demand, or bring development opportunities to mid-tier medical insurance, and additional premiums are expected to reach the level of 10 billion or even 100 billion dollars. Long-term development experience in various countries shows that economic growth will accelerate the rise in health spending. Public health insurance will always be the main protagonist of health payments; private sector commercial insurance plays a supporting role in most countries, and if there are institutional arrangements for compulsory purchases, there may be a lot of room for development in the long run.

The bank recommended focusing on Ping An (02318), Taibao (02601), AIA (01299), and Human Insurance (01339).