Since the mid-1980s, the Chinese government has implemented health insurance reforms with the aim of replacing the free health care system with a new contributory health insurance system. The reforms have been implemented in a gradual and peaceful manner. They have gone through four phases: the exploration phase (1984-92); the experimental phase (1993-7); the implementation phase (1998-2001); and the extension phases (2002 to present). After almost three decades of effort, a multi-layered health insurance system has been established to provide financial protection against illnesses for different segments of the population. The multi-layered health insurance system consists of the Urban Employee Basic Medical Insurance (UEBMI), the New Rural Cooperative Medical System (NRCMS), Urban Resident Basic Medical Insurance (URBMI) and the Critical Illness Insurance Scheme (CIIS). The UEBMI is the biggest health insurance scheme in China and the only compulsory health insurance scheme in the nation. The rest of the schemes are voluntary in nature and only provide partial coverage for the insured.