OBJECTIVE： To provide reference for further implementation and improvement of “Two Tax Bill” medicines distribution reform. METHODS： Literature review and field investigation were used to systematically sort out， summarize and analyze the effect of “Two Tax Bill” medicines distribution reform and potential problems. Corresponding policy suggestions were proposed. RESULTS & CONCLUSIONS： The “Two Tax Bill” medicines distribution reform boosted the integration and re-combination of medicines distribution system， and effectively rectify the medicines distribution system. However， this study found no evidence of its effect on reducing the high medicines prices. We suggest that， the implementation of “Two Tax Bill” medicines distribution reform should firstly ensure the stable supply of medicines， especially the availability of essential medicines in rural remote areas， and those medicines with high risk of shortage. It is also suggested to strengthen the audit of tax receipts； establish long-term mechanism to promote on-time payment to suppliers by hospitals；break down local protection； set up efficient multi-ministerial coordination mechanism.