Health,Medical Services and New rural Cooperative Medical System——based on Hubei Province data of CHNS

The new rural cooperative medical system has been tried since 2003,the participation rate increased every year,more and more rural residents had got medical compensation from it.Based on the hubei province data of CHNS 2000,2004 and 2006,The paper find that rural resident's decision whether to participate in new rural cooperative medical system mainly depend on their own health status,indicating the new rural cooperative medical system encounters adverse selection.while the new rural cooperative medical system has significant effect on reducing medical expenditure,but not on improving the rate of ill treatment.