The coverage of the urban and rural residents' medical insurance system includes all persons who should be insured by the existing urban residents' medical insurance and the new rural cooperative medical insurance (combined), that is, it covers all other urban and rural residents except those who should be insured by the employee basic medical insurance. Migrant workers and people with flexible employment are required to participate in the basic medical insurance for employees in accordance with the law. Those who have difficulty can participate in the urban and rural residents' medical insurance in accordance with local regulations. All localities should improve insurance participation methods, promote insurance coverage when needed, and avoid duplicate insurance participation.

Adhere to multi-channel financing, continue to implement a financing method that mainly combines individual contributions and government subsidies, and encourage collectives, units or other social and economic organizations to provide support or funding. All localities should consider the needs of urban and rural residents for medical insurance and critical illness insurance in an overall manner, and follow the principle of balancing fund revenue and expenditure.

Reasonably determine unified financing standards for urban and rural areas. In areas where there is a large gap between the individual payment standards of urban residents' medical insurance and the new rural cooperative medical insurance, differential payment methods can be adopted to gradually transition within 2 to 3 years. The actual per capita financing and individual contributions after integration shall not be lower than the current level.