Medical insurance payment is a key mechanism to ensure that the masses get high-quality medical services and improve the efficiency of fund use. We summarize the connotation and value of DRG medical insurance payment mode, and sort out the experience of DRG medical insurance payment mode reform in representative countries in the world. Combining the process and future development goals of China's DRG medical insurance payment mode reform, we explained the problems and challenges that China's DRG medical insurance payment mode reform may face. On this basis, we also put forward countermeasures and suggestions to further improve the reform of DRG medical insurance payment mode. Our research helps to deepen the understanding of DRG medical insurance payment mode, and has important practical significance for promoting the smooth progress of DRG medical insurance payment mode reform.