Abstract: Empirical analysis was used in the analysis of the income structure of rural residents in Zhejiang Province and its impact on the level of medical care expenditures. It proved that the current level of consumption was to some extent influenced by the past levels of consumption and income. The family-run income made a higher contribution rate to per capita net income, mainly used for the consumption of diet, clothing, housing and other infrastructure, and had a certain degree of negative correlation with medical care expenditures. Wage income made the greatest contribution to per capita net income and also made a great contribution to medical care expenditures which were mainly increased with the raise of wage income. It was highly proposed to speed up the pace of urbanization and to develop the secondary industry and tertiary industry vigorously in order to optimize the income structure to increase the income of the rural residents. It was also highly recommended to promote the development of medical care expenditures and to raise the level of medical care expenditures.