China's Bold Move: Full Coverage of Childbirth Medical Expenses by 2026 to Combat Population Decline

China has announced plans to fully cover all childbirth-related out-of-pocket expenses starting next year, according to the national healthcare security administration. This initiative aims to encourage more young couples to start families amid declining population figures.

By 2026, the country intends to implement nationwide full reimbursement for all policy-covered medical expenses associated with childbirth, including prenatal examinations. The administration stated in a Saturday report that this would "improve the level of medical expense coverage for prenatal examinations, striving to achieve 'no out-of-pocket expenses' for childbirth."

This policy represents Beijing's latest effort to address the country's declining population crisis. China's population decreased for the first time in decades in 2022, with the downward trend continuing through 2024.

Demographic experts anticipate this decline will persist due to falling birth rates. The combination of a shrinking workforce and growing elderly population is expected to place additional financial pressure on already indebted local governments.

China's birth rates have been declining for decades, initially due to the one-child policy implemented from 1980 to 2015, combined with rapid urbanization. Additional factors discouraging family formation include the high costs of childcare and education, employment uncertainty, and economic slowdown.

Several Chinese provinces have already taken the initiative to make childbirth nearly free of charge, including Jilin, Jiangsu, and Shandong.

In March, China announced plans to "actively" respond with policies supporting both its elderly population and young citizens, including childcare subsidies and free preschool education. Previous attempts to boost birth rates have included extended maternity leave, financial incentives, tax benefits, and housing subsidies.