China to cover all ‘out-of-pocket expenses’ for childbirth from 2026

In a sweeping policy shift addressing demographic challenges, China’s National Healthcare Security Administration has declared comprehensive coverage for all out-of-pocket childbirth expenses starting in 2026. The landmark initiative will provide nationwide reimbursement for policy-covered medical services encompassing prenatal examinations and delivery procedures, effectively eliminating personal financial burdens for expecting families.

The announcement, detailed in an official administrative report released Saturday, represents Beijing’s most aggressive measure to date in countering persistent population decline. China recorded its first population decrease in decades during 2022, with subsequent years through 2024 maintaining this downward trajectory despite previous intervention attempts.

Demographic analysts attribute the sustained reduction to multiple structural factors including decades of one-child policy enforcement (1980-2015), accelerated urbanization patterns, and contemporary economic pressures. Soaring childcare and education costs coupled with employment instability and broader economic deceleration have further discouraged family formation among younger generations.

This healthcare expansion builds upon existing provincial initiatives already implemented in Jilin, Jiangsu, and Shandong provinces where near-total childbirth cost coverage has been tested. The national rollout coincides with broader governmental commitments announced last March to address both aging population concerns and youth challenges through childcare subsidies and tuition-free preschool education.

Previous pronatalist measures included extended maternity leave provisions, financial incentives, tax benefits, and housing subsidies. However, these incremental steps failed to reverse the demographic trend significantly, prompting more comprehensive intervention through direct medical cost elimination.

The policy implementation will unfold against a backdrop of concerning demographic projections. Experts anticipate continuing birth rate declines that threaten to shrink China’s workforce while simultaneously expanding elderly populations—a dual challenge that could strain already burdened local government finances nationwide.