At present, there are many problems plaguing the social health insurance system. These problems cannot be solved overnight. But they must be addressed by the government carefully so that the government can carry out further reform and achieve universal health coverage (UHC) in the future. This chapter borrows some international experience that can be constructive and pragmatic for maintaining financial sustainability of the social health insurance system. It also examines the current policies adopted by the government to deal with high drug costs. This chapter argues that there is a pressing need for the Chinese government to strengthen its anti-fraud capacity, utilize data mining technology, improve health insurance management and perfect the centralized drug procurement system in order to ensure the financial sustainability of health insurance system and achieve UHC in the long run.