Abstract Objective: According to analysis the audit report of the management and usage in 2014 of new rural cooperative medical system (NCMS) funds in Hubei province summary the problems and puts forward corresponding countermeasures and Suggestions .method : we used the content analysis of Bernard Burleson to analysis the 20 audit reports of different districts . Results：There are six main problems at different level existed in the management and usage of NCMS Insurance funds in Hubei province, such as repeat purchasing insurance of primary medical treatment ，defrauding the NCMS funds , illegal using the NCMS fund and so on .Conclusion：Through improving the medical insurance system, strengthening supervision and audit of the management and usage of NCMS funds ,enhancing the level of information management and strengthening the propaganda and education and so on, to make the fund management and disbursement more scientifically, standardly and efficiently,