The DRG/DIP payment method, as a bundled payment mechanism between social health insurance (“SHI”) and hospitals for inpatient services in China, targets to improve the efficiency of SHI fund utilization by guiding hospitals to control costs reasonably. However, it also brings potential challenges, such as the risk of inability to meet high-value medical needs like innovative drugs. Commercial health insurance, including middle-market medical insurance, serves as an important supplementary payment method to SHI, bridging the gap between the basic medical needs of general population and their personalized medical needs. With the full implementation of the DRG/DIP payment reform, the commercial health insurance market is expected to see development opportunities for middle-market medical insurance.