China’s healthcare system has made great achievements in the management of medical services and public health challenges for the Chinese people. However, the issue of an aging population in Chinese society is becoming more and more salient. The gap between demand and supply of healthcare is expanding. China’s healthcare system is facing unprecedented challenges. These problems include an insufficient medical insurance fund, nonuniform insurance reimbursement policies, a poor integrity system, and a lack of supervision in the management of the medical insurance fund. To address these challenges, some practical solutions are worth considering. A national medical insurance supervision platform should be strengthened. Besides, blacklists for illegal medical institutions and individuals engaged in malicious medical disturbances should be created. The country should also introduce policies to narrow the differences in regional medical insurance policies and balance the reimbursement levels of residents in different regions. Big data and artificial intelligence can be used to monitor the entire process of medical insurance fund utilization. The government needs to establish relevant laws and regulations to optimize the medical insurance system and ensure the safe and effective operation of the medical insurance fund.