Based on ELES model,this essay puts forward a statistic equation on the primary medical needs and measures the basic medical needs,the marginal propensity to consume the medical products,the income elasticity of both urban and rural residents by using cross-sectional data.

OBJECTIVE To know about the health status and medical demands of the crowd in the community, thus providing foundation for setting relevant health care measures for the people in the community.

Since the promulgation and enforcement of the Basic Medical Insurance System for Urban Workers in China, it has played a vital role in ensuring the basic medical demand of the insurants.

This paper computationally analyzed the urban residents basic demand expenditure, the Engel coefficient and the marginal propensity to consume by utilizing extend linear expenditure system and through inspecting the consumption structure of uban residents in Hubei province.