National Healthcare Security Administration: Long-term care insurance does not set a deductible, and in principle, it does not directly provide cash payments to disabled individuals.

On March 26, the State Council Information Office (State New Office) held a press conference, where Wang Wenjun, Deputy Director of the National Healthcare Security Administration, and relevant officials from the Ministry of Finance introduced the progress of establishing a long-term care insurance system and answered questions from reporters.

National Healthcare Security Administration: Long-term Care Insurance Covers All Citizens, No Urban-Rural Divide

Wang Wenjun stated at the press conference that the construction of the long-term care insurance system adheres to the principle of universal coverage, with all employees and residents participating. It follows the principle of coordinated urban and rural development, meaning within the same regional pool, there is no distinction between urban and rural residents; regardless of whether they come from the countryside or the city, they are reimbursed from the same fund and enjoy benefits. It also upholds fairness and uniformity, with basic consistency across different regions in terms of coverage targets, assessment standards, contribution rates, and service items.

National Healthcare Security Administration: Since 2016 Pilot, Long-term Care Insurance Has Driven Over 60 Billion Yuan in Social Capital Investment in Related Industries

Wang Wenjun mentioned that the establishment of the long-term care insurance system has fostered new business models and formats, such as the development, production, and leasing of assistive devices, disability level assessments, and social participation in management. According to preliminary statistics, since the pilot began in 2016, the long-term care insurance has attracted over 60 billion yuan in social capital investment in related industries, making it a new engine for economic growth.

National Healthcare Security Administration: Long-term Care Insurance System Can Start with City and County-Level Coordination, Avoiding “One-Size-Fits-All” Approach

Huang Xinyu, Director of the Medical Service Management Department of the National Healthcare Security Administration, said at the press conference that the “Opinions on Accelerating the Establishment of a Long-term Care Insurance System” stipulate that within about three years, a basic long-term care insurance system suitable for China’s national conditions should be established. By 2028, the system should be broadly implemented nationwide. In terms of coordination levels, it can start with city and county-level integration, or explore provincial coordination based on local circumstances. Cities and counties with conditions can proceed first, while those lacking conditions should strengthen their foundations before implementation. Overall, the approach will avoid a “one-size-fits-all” or uniform rollout.

National Healthcare Security Administration: No Deductible Threshold for Long-term Care Insurance; Generally No Direct Cash Payments to Disabled Persons

Zhang Xifan, head of the Benefits Security Department, said at the press conference that the long-term care insurance fund is mainly used to pay for eligible basic long-term care services, and generally does not provide direct cash payments to disabled individuals. The system does not set a deductible threshold. Regarding reimbursement ratios, in regions where residents and employees have significantly different contribution levels, there are distinctions between the two groups, reflecting the principle of rights and responsibilities. To ensure the sustainability of the fund, the maximum annual payment limit shall not exceed 50% of the per capita disposable income of urban and rural residents in the previous year in the regional pool.

Proofreader: Liu Rongzhi