Abstract: The New Rural Cooperative Medical System(NRCMS) is designed to construct the farmers' health insurance network, whose implementation can ultimately ensure and support the maintenance and improvement of the health of rural group.In the implementation, NRCMS has positive influence on farmers' health service utilization and medical care conduct through the well-performed cost sharing mechanism, but in different areas the performance are different, which is the key reason for the disparity of health level between different areas.Based on the investigation to the implementation of NRCMS in Nanchong, Sichuan, an underdeveloped prefecture-level city in west China, this paper does an in-depth analysis on the existing problems of the implementation of NRCMS and the causes, then brings forth pertinent suggestions to the policy improvement, in hope of providing a new thought to the reform of NRCMS in underdeveloped areas.