Exploring the supervision mechanism of medical insurance funds under the DRG payment model in China will help to promote the diagnosis standardization, improve the efficiency of fund use, and ensure the safety of funds and the rights and interests of insured persons. It analyzes and draws lessons from the domestic and foreign medical insurance fund supervision mechanism through literature research. It is recommended to improve supervision system of the healthcare security fund, strengthen the multi-party coordination and linkage mechanism, establish a result-oriented supervision index system with process supervision as a core, build an intelligent regulatory system, combine daily supervision with regular evaluation, and establish a performance assessment mechanism under DRG payment.