Core Insights - The implementation of the policy-based long-term care insurance (referred to as "long-term care insurance") has significantly alleviated the burden on caregivers, particularly in the context of an aging population in China [1][2]. Group 1: Long-term Care Insurance Implementation - The long-term care insurance system was fully launched in Changzhou, Jiangsu Province, on January 1, 2022, after a three-year pilot program [1]. - The program aims to enhance the elderly care support system in response to the increasing demand due to the aging population [1]. Group 2: Service Structure and Benefits - The long-term care insurance in Changzhou supports various care services, including home care, institutional care, and hospital care, creating a multi-tiered service system [2]. - Caregivers can receive a monthly living care subsidy of 600 yuan, in addition to multiple home care visits funded by the long-term care insurance [2]. - The program has a monthly payment cap for severe and moderate disability cases, set at 1500 yuan and 900 yuan, respectively [2]. Group 3: Funding and Operational Model - The funding mechanism for the long-term care insurance involves a shared responsibility model, with individuals contributing 30 yuan annually, supplemented by health insurance funds and government subsidies [3]. - The operational model includes a "government-business cooperation" approach, with the local health insurance bureau overseeing policy formulation and various insurance companies participating in service delivery [3]. Group 4: Quality Control and Industry Collaboration - Quality control measures include dedicated audit staff and an online video monitoring system to oversee care services [4]. - The establishment of the Changzhou Long-term Care Insurance Industry Association aims to address common challenges in the industry, such as coordination and standardization [4]. Group 5: National Expansion and Future Outlook - As of now, 49 cities in China have initiated long-term care insurance trials, covering approximately 190 million people and accumulating over 100 billion yuan in funding [5]. - The issuance of national guidelines in 2025 marks a significant step towards establishing a unified long-term care insurance system across the country [5]. - The ongoing development of the long-term care insurance system is seen as a crucial milestone in addressing the challenges posed by an aging population and enhancing the social security framework [5].

Core Viewpoint - The increasing aging population in China, with approximately 45 million elderly individuals suffering from disabilities or dementia, has led to a pressing need for long-term care insurance (LTCI) to alleviate the burden on families and provide a sustainable solution for elderly care [1][3]. Group 1: Policy Development - The promotion of long-term care insurance is accelerating, with both policy-based and commercial LTCI receiving supportive policies, marking a shift from pilot programs to systematic implementation [1][3]. - The policy-based LTCI, referred to as the "sixth insurance" in the social security system, aims to provide basic care and medical services for disabled individuals, significantly reducing the financial burden on their families [3][4]. - Since its pilot launch in 2016, nearly 190 million people have enrolled in policy-based LTCI, accumulating over 100 billion yuan in funds and spending more than 85 billion yuan [3]. Group 2: Service Standards and Regulations - The National Healthcare Security Administration has released a trial version of the "National Long-Term Care Insurance Service Project Directory," which specifies 36 basic service items covering daily care, professional nursing, and health management [4]. - The introduction of the service directory aims to standardize care services, enhance service quality, and ensure the rights of beneficiaries while stabilizing the LTCI fund's operation [4]. Group 3: Challenges and Recommendations - The implementation of policy-based LTCI faces multiple challenges, including a shortage of professional caregivers, uneven distribution of care services, and a lack of a stable funding mechanism [6][7]. - Experts suggest that the government should establish a multi-tiered funding mechanism, integrating personal contributions, corporate support, and public donations to create a sustainable funding framework [7]. - There is a need for collaboration among health, civil affairs, and human resources departments to expand the professional caregiver workforce and improve service quality through training and support for community care initiatives [7]. Group 4: Market Opportunities for Commercial LTCI - The demand for long-term care services is projected to reach 3.1 trillion yuan by 2030 and nearly 6.6 trillion yuan by 2040, highlighting the growing market for commercial LTCI as a complement to policy-based insurance [7]. - Recent trends indicate a push for the development of commercial LTCI, with policies encouraging the integration of health insurance and management, as well as the expansion of service offerings [8]. - Insurance companies are advised to innovate products by expanding coverage for dementia and moderate disabilities, and to create a "cash + service" payment model to enhance product appeal [8].