While that’s partially true, it’s also reductionist, and the trend in China is to expand coverage, not the other way around.

https://en.wikipedia.org/wiki/Healthcare_in_China

Healthcare in China is primarily provided by state-owned hospitals. Medical insurance is primarily administered by local governments. Over the twentieth century and twenty-first century, using both public and private medical institutions and insurance programs. As of 2020, about 95% of the population has at least basic health insurance coverage.

Medical assistance has subsidized 78 million poor people to participate in basic medical insurance, and the coverage of poor people has stabilized at over 99.9%.