? Abstract: Objective: To conduct a budget impact analysis on Herceptin, provide references for its reimbursement policy on Urban Medical Insurance Plan. Methods: Budget impact analysis model was constructed to measure the expected changes in the expenditure of medical insurance system. Results: If Herceptin could be reimbursed since 2016, the increase rate of medical insurance budget on patients with Breast Cancer with HER-2 positive in 2016-2020 will be 135.30%, 141.93%,142.25%, 142.27% and 143.82%. Conclusion: Reimbursement of Herceptin will considerably increase the total budget of medical insurance, suggest that improve the national relevant drug price negotiation strengths and make the reimbursement policy according the local economic and Urban Medical Insurance fund functioning situation.