Objective: To analyze panel data on basic medical insurance financing for urban and rural residents in 16 cities in Shandong Province from 2015 to 2022, and verify the difference in county level of financing and its convergence trend. Methods: Using spatial auto-correlation to analyze the spatial agglomeration and heterogeneity patterns of each time section, and calculate σ Convergence coefficient, respectively constructing fixed effect models and weighted fixed effect models for absolute β Convergence. Results: The Moran’s I of each time section of the funding level gradually decreased, presenting a geographical random distribution pattern; there is existence σ Convergence and Absolute β Convergence. Conclusion: There are still differences in the level of county financing, but the differences are narrowing. Countermeasures and suggestions are proposed to narrow the county gap and promote provincial balance.