The United States has distinguishing qualities in terms of health insurance with commercial health insurance as the main body, Medicare and Medicaid for the supplement. It is also the only developed country that has failed to realize universal health care. In fact, since 1912, the federal government has promoted the universal health insurance legislation, but due to party division, interest groups, and other ideological factors, the legislative process has been slow. In 2012, the Obama administration led the final passage of the health care bill which laid the institu-tional foundation on the road toward universal health care. The Reform of American health insurance has important implications for China, especially with a focus on the rule of law and democratic participation, and its private health insurance management and cost control experiences in medicine serve as an important reference for improving the quality of health insurance with expanded coverage.