Objective To verify that traditional Chinese medicines have certain price advantages compared with western medicines,and to estimate the rational increase in the compensation proportion of traditional Chinese medicine in the new rural cooperative medical system.Methods Using stratified sampling survey and literature review,the average outpatient and hospitalization expenses in the treatment of common diseases in rural areas were calculated and compared among traditional Chinese medicine,western medicine,and integrated traditional and western medicine.Results For average outpatient and hospitalization expenses,traditional Chinese medicine was lower than western medicine,integrated traditional and western medicine was lower than western medicine.and traditional Chinese medicine was lower than integrated traditional and western medicine.For hospitalization expense,traditional Chinese medicine had a 25.2%lower expense compared with western medicine.The ratios of expenses were statistically calculated,and the mathematical model for the compensation proportions of traditional Chinese medicine and western medicine in the new rural cooperative medical system was put forward.Conclusions In the implementation scheme of new rural cooperative medical system,the compensation proportion of traditional Chinese medicine in outpatient and hospitalization expenses should be increased by 25%and 33%respectively compared with western medicine.