By 2011, government subsidies accounted for 75 and
85% ofthe premiums of NRCMS and URBMI respectively [2],
making these insurance programs very attractive investment
options. The heavy subsidies are critical for coverage
expansion. For example, although Chinese governments
attempted to establish NRCMS in 1996, the NRCMS coverage
stayed at very low level until the subsidies were
announced in 2003 [46].With in five years of the announcement,
the subsidies increased fourfold [21], and along with
the increased subsidies, the NRCMS enrollment rose to 800
million people