This is the correct answer in a lot of cases and even if their hukou is in a modern place like Shanghai, the best hospitals and latest medical treatments are often not part of the basic medical coverage. Long lines and long waits happen for many services. A two tier system of public and private care exists with the rich able to pay for private doctor, private rooms, and advanced care. I lived in Shanghai for 11 years. Managed to have a heart attack there and got great emergency service at a fraction of the cost in the USA. After care was long lines and long waits at the local hospital so I went to the international clinic for that.