To study the influences of the demographic evolution to government expenditure on health by using the method of generalized method of moment(GMM)by dynamic panel data of 31 provinces or cities from 1998 to 2011. The result showed that the elderly dependency ratio had a significant positive impact on government health expenditure, while the reduction of child dependency ratio would increase it. There were clear differences among regions. The elderly and child dependency ratio were both significantly positive for the eastern region, no significant effect for the central, and positive and negative respectively for the western. Therefore, it is needed to further improve the proportion of government health spending in total health expenditure, increase transfer payment, reduce regional differences and achieve the equalization of basic public health services.