Residents' awareness of the medical insurance system will affect their reimbursement and decision-making of medical treatment, thereby affecting their sense of gain. Therefore, it is necessary to find effective ways to improve the awareness of medical insurance policies. This study conducted a questionnaire survey on residents of Taicang City and applied descriptive statistics, multivariate logistic regression analysis, analysis of variance, and other methods to analyze the awareness of medical insurance policies among residents of Taicang City and propose a path to improve their awareness of medical insurance policies. A total of 559 valid questionnaires was collected, and the results showed that the overall awareness of medical insurance policies among residents was relatively low. Among them, the lowest level of awareness was chronic and special diseases in outpatient service, long-term care insurance, maternity insurance reimbursement, major disease insurance, and remote medical treatment. There are differences in awareness among policies, populations, and differences in medical insurance policy promotion services also have a significant impact on medical insurance awareness.