The General Office of the Communist Party of China Central Committee and the General Office of the State Council have issued the Opinions on Accelerating the Establishment of the Long-Term Care Insurance System. Meanwhile, the National Healthcare Security Administration and eight other authorities jointly released the supporting Implementation Plan. It is clarified that a basic long-term care insurance system framework will be established in about three years. The main contents are as follows:

• Long-term Care Insurance LTCI) is a social insurance system that provides services or financial security for the basic daily care and closely related medical care for individuals  with disabilities. As the “sixth type of social insurance”, it is listed alongside pension insurance, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance.
• Coverage and Enrollment Methods of LTCI

1. Insured Objects: Employers, employees , retirees, flexible employees, and unemployed urban and rural residents.
2. Financing Mechanism: The overall premium rate for LTCI is controlled at approximately 0.3%. Funds are raised through multiple channels including employers, individuals, and the government, with differentiated contribution policies.

1. On-the-job employees: Employers and employees each contribute approximately 0.15%, with premiums paid together with contributions for the Basic Medical Insurance for Employees (the “Employee Medical Insurance”).
2. Unemployed residents (rural residents and unemployed urban residents): Funds are raised on an annual basis and paid together with contributions for Urban and Rural Resident Medical Insurance. The premium rate is halved for the first year and will be gradually increased to around 0.3% within five years.
3. Retirees: Individuals contribute approximately 0.15%, with no contribution from their former employers.
4. Flexible Employees: They are encouraged to participate in the insurance in accordance with the standards for on-the-job employees, with an individual contribution of around 0.3%; alternatively, they may participate in accordance with the standards for unemployed urban and rural residents.
5. Other Individuals: The government provides classified subsidies for the individual contribution portion of eligible disadvantaged groups. Individuals under the age of 18 participate by following their parents or other legal guardians.

• Coverage and Benefit Standards of LTCI

1. Eligibility: Individuals who have made required contributions to the insurance scheme  , have been in a disabled state for more than 6 consecutive months, and have been assessed and recognized as disabled upon application. Priority shall be given to persons with severe disabilities. Insured persons who have already received living care allowances under work-related injury insurance shall not enjoy  LTCI benefits on a duplicate basis.
2. Benefit Standards: Differentiated benefits are provided based on disability level and service delivery method. The fund has no deductible. The payment ratio for care service expenses is approximately 70% for employed individuals and retirees, and approximately 50% for unemployed urban and rural residents. The annual maximum payment limit of the fund shall not exceed 50% of the previous year's per capita disposable income of urban and rural residents in the pooling region.
3. Service Methods: Institutional care, home-based care, and community-based care are supported. The use of home-based and community-based care services is encouraged. Areas newly implementing LTCI must implement the nationally unified service item catalog; pilot cities shall gradually align with the national catalog within approximately three years.
4. Fund Payment: The fund is mainly used to pay for basic nursing service fees (excluding bed fees, meal fees, expenses payable by medical insurance, etc.), and in principle no cash shall be disbursed directly. Assessment fees for the first approved assessment and regular re-assessments shall be paid by the fund.
5. Incentive Mechanisms: Continuous contribution is encouraged, with the possibility of appropriately increasing the payment ratio. For individuals who have not participated or who re-enroll after an interruption (except for special circumstances such as newborns), restrictive measures shall be established, including a waiting period for benefits and a phased reduction of benefit levels. The standard fixed waiting period for benefits is set at six months in principle and shall be extended with an increase in the number of years without contribution.