Ministry of Finance: Provide subsidies to urban and rural residents enrolled in long-term care insurance in accordance with regulations

Our Reporter Han Yu

On March 26, the State Council Information Office held a press conference to introduce the progress of establishing a long-term care insurance system. Wang Wenjun, Deputy Director of the National Healthcare Security Administration, explained that long-term care insurance is a new social insurance program that raises funds through universal participation, providing basic daily care and medical services for insured individuals who have lost the ability to perform normal activities, with coverage for related care expenses.

Wang Wenjun stated that based on previous pilot experiences, and with the approval of the Party Central Committee and the State Council, the General Office of the CPC Central Committee and the General Office of the State Council jointly issued the “Opinions on Accelerating the Establishment of a Long-term Care Insurance System” (hereinafter referred to as “the Opinions”). The document clearly calls for the establishment of a long-term care insurance system that is suitable for China’s national conditions within about three years. This marks a shift from pilot projects to nationwide implementation, which is of great significance.

Establishing a long-term care insurance system is a major institutional arrangement to address urgent needs and improve the social security system. For people with disabilities, it is a “must-have”; for their families, it is a “relief”; and for the industry, it means a “stimulus.”

Wang Wenjun introduced that this system has spurred new business models and formats, such as the development, production, and leasing of assistive devices, disability level assessments, and social participation in management. These can create new economic growth points. Preliminary statistics show that since the pilot began in 2016, long-term care insurance has attracted over 60 billion yuan in social capital investment into related industries.

“The establishment and implementation of the long-term care insurance system is a systematic project and a long-term task that requires the joint participation of society,” Wang Wenjun said. To implement the Opinions, the National Healthcare Security Administration, Ministry of Civil Affairs, Ministry of Finance, Ministry of Human Resources and Social Security, Ministry of Agriculture and Rural Affairs, National Health Commission, State Taxation Administration, and China Disabled Persons’ Federation have issued supporting implementation plans. These guide provinces to tailor their approaches based on local realities and refine specific work arrangements.

Guo Yang, Director of the Social Security Department at the Ministry of Finance, stated at the press conference that the Ministry of Finance has taken a series of measures to actively support the development and implementation of the long-term care insurance system.

First, through pilot explorations to accumulate experience. Working with the National Healthcare Security Administration to improve policy design in pilot regions and explore a reasonable funding mechanism shared by all parties. The scope of insured personnel in pilot regions initially included employees, with some regions expanding to residents. To support participation, pilot regions have developed relevant fiscal subsidy policies based on local conditions, including subsidies for insured residents and assistance for those facing difficulties, which has provided valuable experience for national policy formulation.

Second, clarifying government subsidies for residents’ participation. Building on pilot results, and in cooperation with the National Healthcare Security Administration, efforts have been made to strengthen top-level design and promote a unified national long-term care insurance system. The Opinions and the eight departments’ implementation plans specify the need to establish diverse funding channels involving units, individuals, the government, and society. For urban and rural residents insured under the scheme, the government provides subsidies according to regulations. Additionally, the government offers categorized assistance to vulnerable groups such as those in extreme poverty and low-income households.

Guo Yang noted that these subsidies are jointly funded by central and local governments, with arrangements already included in the 2026 central transfer payment budget. Considering the gradual expansion of participation across regions, the central government will initially provide advance payments based on projected insured numbers, with subsequent actual settlements in the following year. This ensures full and timely disbursement of subsidies. As participation increases, fiscal support will continue to grow.

Third, strengthening fund management and supervision. Both the Opinions and the eight departments’ plans clearly stipulate that the long-term care insurance fund, like other social insurance funds, must be kept separate, managed independently, and used exclusively for its purpose. The fund is also included in the scope of social insurance fund budgets, with requirements for scientific budget preparation and enhanced performance management. Currently, the Ministry of Finance is working with relevant departments to develop management measures for the long-term care insurance fund and fiscal subsidy funds, further strengthening financial oversight, clarifying procedures for fund allocation, disbursement, and use, and ensuring the security, regulation, and efficiency of fund utilization.

“Next, the Ministry of Finance will earnestly implement the decisions and deployments of the Party Central Committee and the State Council, guide local finance departments to allocate fiscal subsidies promptly and fully, strengthen financial oversight, and promote the steady implementation of the long-term care insurance system. We aim to ensure that policy benefits reach eligible insured individuals in a timely and efficient manner, effectively reducing the caregiving burden on families of disabled individuals,” Guo Yang said.

(Edited by: Wen Jing)

Keywords: Long-term care insurance Insurance