InAugust2011,theSangzhiCountygovernment,HunanProvince,adoptedaseriesofnewhealthcarepoliciesasanationalpilotoftheNewCooperativeMedicalScheme(referredtoas2011NCMS).Thesepoliciesweredesignedtofurtherresolveillness-ledpovertyandthepoorstateofhealthcareinthelocalarea.TheprogramhadapositiveimpactandspreadtootherregionsinHunanProvince.Thispaperwilldiscusstheprogressmadeasaresultofthepoliciesandseveralissuesthatchallengetheschemeinpractice.Atotalsampleof1212inpidualsand303householdswereincludedintheanalysis,and98interviewswereconductedwithpeoplerelatedtothescheme.Ourmajorfindingsindicatethatthe201!NCMShassignificantlyreducedtheout-of-pocketmedicalpaymentofruralresidents,andalsoincreasedthetownshiphospitals’patientflow.However,themedicalschemestillfacesmanychallengingissuesduringtheimplementation.WiththeincreasinginterestamongtheChinesepolicymakersinstrengtheningandpromotingtheSangzhiModel,theimpactsoftheschemedeservegreaterattentioninpracticesoastofurtherimproveNCMSinruralChina.
