But in the case of non-poor households not contributing to health insurance programmes, policy challenges differ. While some public subsidy is required to make them join a health protection programme, full subsidisation should be avoided, because it could reduce the incentives to join the contributory programme. In China, given that there is no contributory programme in the rural areas, the problem is not to render it incentive compatible, but more to ensure fiscal sustainability in the long run, as the scope and depth of coverage of the programme progress. Besides, the geographical segmentation between programmes may also constitute an obstacle to labour mobility between rural and urban areas.