On March 17，2018，the National People’s Congress passed the State Council’s institutional reform proposal and established the National Healthcare Security Administration as a direct agency of the State Council. This report analyzed the major responsibilities of the newly established National Healthcare Security Administration：to optimize the basic medical security system，further improve the basic medical service system，strengthen the management of medical insurance funds，etc. It also introduced the major measures adopted after the establishment of the National Healthcare Security Administration，such as national centralized drug negotiations，centralized drug procurement，deepening medical insurance payment system and reform of payment methods. It highlighted that the medical insurance’s strategic purchase mechanism would be based on clinical values of drugs.