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Up to 2003 the majority of Chinese population did not have access to health insurance and only the urban employees were covered. Since 2003 New Cooperative Medical Scheme (NCMS) was introduced to cover rural residents and since 2008 Urban Resident Medical Insurance was implemented to insure non-workers, i.e., children and the elderly. The government has been subsidizing both of the new medical insurance schemes by paying 3/4 of the insurance premiums. The NCMS, the largest insurance scheme in China, started with extremely low premiums, at 30–40 yuan in 2003, and reimbursed very little of the medical costs. Attracted by the large government subsidy, the insurance expanded rapidly and covered most of the rural population by 2008. In 2011, around 93% of Chinese 45 and older have health insurance (Table 2). The premium and reimbursement rates steadily increased year by year. In 2014, premium has reached nearly 400 yuan. Correspondingly, reimbursement rate has increased significantly.
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