Since 2010 the development of China’s Internet-based health service （IBHS） market has been accelerating. Imbalanced allocation of health resources，social and economic development，and technological progress are backgrounds of its development. Government policies，finance and capital，Internet and technology innovation companies，commercial health insurance，etc.，are the promoter of its development. In the field of health service，“Internet +” has roughly gone through three phases of telemedicine，Internet-based health information service and “Internet +clinical Medical & health service”，and government policies have also evolved the process. IBHS has facilitates residents to seek medical advice，optimizes the process of seeking medical treatment，and promotes the management of chronic diseases，which in turn promotes the rational allocation and use of health resources and improves the efficiency of health insurance management and governance. The development of IBHS in China is significantly influenced by the financing mechanism，the essential characteristics and market space of China’s social and commercial insurances，the public monopoly and a low-responsive healthcare delivery system，and low customer stickiness and inability to compare goods and services. IBHS’ future development requires reforms in the above areas，and also needs free choice of health institutions according to their actual situations，should not be enforced by administrative means.