Insurance care plan for elderly to expand

China will continue expanding its long-term care insurance program nationwide and roll out supporting policies in the coming years to meet rising demand for elder and disability care in its rapidly aging society, the National Healthcare Security Administration said.

Since 2016, the country has piloted the long-term care insurance program across 49 cities.

The program covers part of the cost of daily living assistance for elderly people, such as help with tasks like eating and bathing, and basic medical services as well as routine wound care for people with disabilities.

At a recent conference held in Ningbo, Zhejiang province, the administration said the program now covers nearly 300 million people and has benefited more than 3.3 million individuals living with disabilities. Cumulative spending from the fund has exceeded 100 billion yuan ($14.3 billion).

During the 14th Five-Year Plan period (2021-25), the program reduced nursing care expenses by more than 60 billion yuan.

The initiative has also supported growth in the elderly care service sector and the broader health industry. Since 2021, more than 50 billion yuan in social capital investment has flowed into related fields across the 49 pilot cities.

The number of designated long-term care service institutions has surpassed 8,800, while the workforce of nursing professionals has expanded to about 300,000.

Both figures represent increases of more than 50 percent since early 2021.

China's population is aging rapidly. The number of citizens aged 60 and above reached 310 million by the end of 2024, accounting for about 22 percent of the total population. That figure is projected to reach 400 million by 2035.

China has about 35 million seniors living with disabilities, accounting for 11.6 percent of the total elderly population. This figure is projected to reach 46 million by 2035.

In response to the growing elderly population, the annual Central Economic Work Conference held in December emphasized the need to expand and improve rehabilitation and care services, promote the long-term care insurance system, and strengthen support for disadvantaged groups.

The administration said it will accelerate the establishment of a long-term care insurance system with Chinese characteristics over the next five years.

The initial focus will be on people with severe disabilities, with the aim of gradually achieving nationwide coverage for the entire population.

Authorities will also work to standardize regulations on financing, benefits and payments to lay a solid foundation for the system's high-quality and sustainable development.

In an interview with China Health Insurance, an industry magazine, Xu Jing, an official with the administration, said standardization is essential to ensure the effective operation and long-term sustainability of the system.

For service providers, unified policies would eliminate the need for heavy investment to comply with varying regional regulations, standards and information systems, reducing transaction costs, Xu said.

A standardized, transparent and unified regulatory framework would also help stabilize market expectations, attract more social capital and promote the efficient allocation of resources, Xu added.