Mr. John Zhao, CEO of China US Health Alliance, led a delegation of executives from China Ping An Annuity Insurance Company to meet with Mark McClellan, MD, former Administrator of Centers for Medicare and Medicaid Services, at Brookings Institution in Washington DC on August 25, 2015. They also met with Patrick Conway, MD, Principal Deputy Administrator and Chief Medical Officer of CMS in Baltimore, Maryland. China Ping An Group is one of the largest insurance, banking and investment conglomerates in China and in the world, with nearly $1 trillion of assets under management. Ping An Annuity Insurance is the largest annuity and private pension management company in China, with about 30% market share and $50 billion under management. They are branching into health insurance and long-term care business, especially partnering with government insurance programs to offer combination insurance and act as administrators. The delegation includes President of Ping An Annuity Insurance, Vice President in charge of health insurance business, and 5 department directors involved in different health insurance functions. During meetings with US officials, Ping An executives had a detailed discussing on how US government health programs worked both at federal and state levels, and how reimbursement methods change towards value-based payment system. They further discussed how private insurance could partner with the government as co-insurers and administrators, and how the government supervised these partnerships in the US.
Dr. Mark McClellan, former Administrator of CMS, is a key figure in health care reform in the United States. During his tenure as CMS administrator, he added prescription drugs benefits to Medicare. He also did extensive research, promoted and implemented new reimbursement method based on quality of care.
US healthcare system is shifting from fee-for-service reimbursement model to valued based payment model, which bases provider reimbursement on population health and quality of care. The new payment model will promote coordination among different providers, changing focus from treating disease to preventing disease and promoting health. This transfer will fundamentally change current healthcare system with new objective, structure, evaluation and incentives.