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].Within five years ofthe announcement,
the subsidies increased fourfold [21], and along with
the increased subsidies, the NRCMS enrollment rose to 800
million people
By 2011, government subsidies accounted for 75 and85% ofthe premiums of NRCMS and URBMI respectively [2],making these insurance programs very attractive investmentoptions. The heavy subsidies are critical for coverageexpansion. For example, although Chinese governmentsattempted to establish NRCMS in 1996, the NRCMS coveragestayed at very low level until the subsidies wereannounced in 2003 [46].Within five years ofthe announcement,the subsidies increased fourfold [21], and along withthe increased subsidies, the NRCMS enrollment rose to 800million people
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