The astonishing rise of China's economy bodies well for the country's population's health. When it comes to health care, economic growth can be both a boon and a bane. The latter includes growing inequities across the socioeconomic spectrum, rising healthcare expenditures, and a lack of efficiency in the health-care delivery system. The paper's main goal is to find out if China's healthcare system has any inequalities or inefficiencies. Next, it tries to figure out whether and how the New Rural Cooperative Medical Scheme (NCMS), a recently established social health insurance programme, addresses concerns with healthcare inequity and efficiency in China. Various analytical methods are used in this work, including the Concentration Index, Decomposition Analysis, Two-part Regression Analysis, and Differences-in Differences analysis. The China Health and Nutrition Surveys from 2004 to 2009 are utilized to compile the data. This paper's findings show that health and health care disparities are widespread in China, favoring those from higher socioeconomic status. Most of the health inequities for rural people are due to socioeconomic causes. The health situation of the urban poor is shockingly worse. In 2003, the NCMS was implemented in rural regions to help rural farmers have equal access to healthcare and financial security. Researchers found that even though NCMS coverage was at 97 percent in 2009, low-income people used informal care such as preventative care more often than high-income people. They may also struggle to pay for the care they require and be forced to spend a large portion of their salary on it. According to this study, the NCMS might worsen healthcare inefficiencies by leading to an increase in healthcare costs. The prereimbursement expenses per episode for NCMS members are substantially greater than those for the uninsured. Village clinics and township health centers—the backbone of the health system for impoverished rural farmers—see a greater increase in pre-reimbursement expenses than county and municipal hospitals.