Abstract：The new rural cooperative medical system is a strategic policy initiated by the central government to promote social equity and balanced development.This policy will surely help to narrow urban and rural development gap,optimize social and economic development and establish a harmonious society when fully implemented.However,this policy which projects to bring well-being to 760 million rural populations still carries some institutional weakness and faces various challenges.If these kinds of problems or negative incentives were not appropriately addressed,the policy effectiveness may be debased or the policy objectives may be deviated,and eventually will injure the healthy operation and its sustainable development.
