With the development of industrialization in modern China, labor groups fell into the vortex of the interaction between health problems and economic problems. However, the Ministry of health of the national government did not have enough funds to improve the medical conditions of workers, so it had to consider using social funds. In this regard, the government has tried to use the funds of business owners to improve labor medical and health conditions and reduce labor medical costs by limiting doctors' consulting fees. The failure of these two approaches led the Ministry of health to adopt labor health insurance. Subsequently, the government promulgated the health insurance plan, focusing on labor health insurance. From the 1930s to 1940s, the national government successively tried to run labor health insurance in Shanghai, Yunnan, Sichuan and other places. The exploration of labor health insurance system in the period of the Republic of China is a helpless measure under the condition of economic difficulties, but it finally became the first practice of labor health insurance in China's modern sense.