Authorities have intervened to stop insurance companies from offering "special drug cards" as incentives to policyholders, citing violations of regulations. Industry experts reveal that the actual usage rate of these card benefits is extremely low, at less than one in a million.
Recently, the Hubei Regulatory Bureau of the National Financial Regulatory Administration issued a notice to provincial branches of insurance companies operating within its jurisdiction. The notice highlighted that some insurers are providing "special drug cards" and similar benefit cards to customers during insurance sales activities, which may constitute offering benefits outside the terms of the insurance contract.
As competition in the insurance market intensifies, offering a variety of value-added services has become a key strategy for companies to attract and retain customers. However, these "special drug cards" are not formal insurance products. They are often provided by third-party agencies and can lead to confusion about insurance coverage and mislead consumers. Regulatory action aims to curb such non-compliant practices, resolve consumer disputes, mitigate market risks, and guide insurers back to lawful operations.
The Hubei bureau's advisory letter required all insurance companies in the region to immediately conduct self-inspections and rectify any practices involving the distribution of "special drug cards" or "CAR-T cards," as well as other unauthorized benefits. Companies found engaging in such activities must cease immediately, address any resulting disputes, and strengthen internal controls and compliance training to prevent recurrences.
"Special drugs" typically refer to high-cost, effective medications used to treat major illnesses such as cancer and rare diseases. CAR-T, or chimeric antigen receptor T-cell immunotherapy, is an emerging personalized cancer treatment that leverages the body's immune system.
According to Long Ge, Deputy Director of the Innovation and Risk Management Research Center at the University of International Business and Economics, many insurers use these cards as a marketing tool to attract and retain customers by promoting high coverage amounts—often reaching millions—which lowers customer acquisition barriers and enhances loyalty.
In reality, the probability of customers actually using these card benefits is extremely low, with fewer than one in a million policyholders accessing the special drug subsidies or CAR-T therapy support. This is because such treatments target niche patient groups with specific severe conditions, and the actual incidence and drug utilization rates are minimal.
Many consumers have reported that insurance agents heavily promote these "free" drug cards as a core benefit when selling policies, emphasizing coverage for expensive special drugs and CAR-T therapies. This marketing approach can mislead customers into believing that the card benefits are part of the insurance policy and backed by the insurer, leading them to purchase policies without fully understanding the card's terms and risks.
Online shopping platforms show numerous "special drug cards" sold by third-party agencies. For example, one 10-year card is priced at 398 yuan and covers 90 domestic and 30 international special drugs. It offers an annual limit of 2 million yuan for domestic drugs, 1 million yuan for overseas drugs, and 1.2 million yuan for CAR-T therapy, with a total coverage of 4.5 million yuan. Notably, these cards mimic insurance products in design, including drug scope, age limits, waiting periods, health declarations, and reimbursement ratios.
The Hunan Regulatory Bureau pointed out that third-party agencies, which lack financial business licenses, issue these cards. Their product designs imitate insurance terms and payout responsibilities, increasing the risk of disputes between consumers, third-party providers, and insurers.
At the end of 2024, the Henan Regulatory Bureau also issued a similar notice prohibiting insurers from offering such unauthorized benefits. Long Ge views these regulatory measures as necessary steps to standardize the insurance market and maintain order. He emphasized that "special drug cards" are neither formal insurance products nor compliant value-added services endorsed by insurers, and they often misrepresent coverage and mislead consumers.
The Hubei bureau further clarified that insurers must comply with regulations, enhance agent management, and strictly avoid distributing benefit cards, procuring them for sales promotions, or implying that the card benefits are insurer-backed. Insurers are also prohibited from conflating card benefits with insurance coverage to avoid misleading policyholders.
Comments