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

Reporter Han Yu

On March 26, the State Council Information Office held a press conference to introduce developments on accelerating the establishment of a long-term care insurance system. Wang Jun, Deputy Director of the National Healthcare Security Administration, said that long-term care insurance is a new line of coverage under social insurance. It raises funds through universal enrollment, and provides basic living assistance and medical nursing care for covered persons who have lost the ability to carry out normal activities. The incurred nursing care expenses are reimbursed.

Wang Jun said that, based on summarizing experience from the earlier pilot programs, and with approval from the CPC Central Committee and the State Council, the General Offices of the CPC Central Committee and the State Council recently jointly issued the Opinions on Accelerating the Establishment of a Long-Term Care Insurance System (hereinafter referred to as the “Opinions”). The Opinions clearly requires that, within about three years, a long-term care insurance system that is basically suited to China’s basic national conditions be established. This marks that the system’s rollout will move from localized pilots to nationwide implementation, which is of great significance.

Establishing a long-term care insurance system is a major institutional arrangement to address the urgent needs and concerns of the public and to improve the social security system. For people with disabilities in carrying out daily activities, long-term care insurance is an “immediate need”; for families of people with disabilities in carrying out daily activities, long-term care insurance is a “relief of burden”; and for the industry, it means “stimulating demand.”

Wang Jun said that the establishment of this system has given rise to new business types and new models, such as R&D, production, and leasing of assistive devices, assessments of care levels for people with disabilities in carrying out daily activities, and the participation of social forces in handling affairs. These can all form new drivers of economic growth. According to preliminary statistics, since the pilot program began in 2016, long-term care insurance has mobilized more than 600 billion yuan of social capital investment into related industries.

“Establishing and implementing the long-term care insurance system is a systematic project and a long-term task, requiring the participation of the whole society,” Wang Jun said. To implement the Opinions, eight departments including the National Healthcare Security Administration, the Ministry of Civil Affairs, the Ministry of Finance, the Ministry of Human Resources and Social Security, the Ministry of Agriculture and Rural Affairs, the National Health Commission, the State Taxation Administration, and the China Disabled Persons’ Federation have issued supporting implementation plans, guiding each province to build on local realities to further refine implementation pathways and specific work arrangements.

Guo Yang, Director of the Social Security Department of the Ministry of Finance, said at the briefing that the Ministry of Finance, based on its responsibilities, has taken a series of measures and actively supported the establishment and implementation of the long-term care insurance system.

First, it explores and accumulates experience through pilot programs. In coordination with the National Healthcare Security Administration, it has guided pilot areas to improve policy design and explore the establishment of a financing mechanism under which all parties share funding reasonably. The enrollment scope in pilot areas started with employed persons, and in areas with conditions, it was further expanded to residents. To support enrollment, pilot areas, based on their own circumstances, researched and formulated relevant fiscal subsidy policies, including providing subsidies to enrolled residents and providing financial aid to enrolled groups facing enrollment difficulties. All of this has accumulated useful experience for the formulation and introduction of policies at the national level.

Second, it clarifies that the government provides subsidies for residents’ enrollment. Building on the work of the pilot programs, it coordinates with the National Healthcare Security Administration to strengthen top-level design and to promote the construction of a nationwide unified long-term care insurance system. The Opinions and the implementation plans of the eight departments specify that it is necessary to establish and improve diversified financing channels involving units, individuals, the government, and society. For enrolled urban and rural residents, the government provides subsidies in accordance with regulations. On this basis, the government also provides categorized subsidies to people with extreme difficulties, persons receiving minimum living allowances, and other groups facing difficulties.

Guo Yang said that all of these subsidy funds are borne jointly by the central government and local governments. In the 2026 central-to-local transfer payment budget, corresponding arrangements have already been made. Considering that local areas’ enrollment work is rolled out gradually, in this year’s central government fiscal subsidies to localities, the payments will first be issued in advance based on the number of residents expected to enroll in each locality, and in the next fiscal year, final settlement will be made based on the actual number of enrolled persons to ensure that subsidy funds can be fully disbursed. Going forward, as the number of enrolled persons increases, the intensity of fiscal subsidies will continue to be increased.

Third, it strengthens funds management and supervision. Both the Opinions and the implementation plans of the eight departments contain explicit provisions. The long-term care insurance fund, like other social insurance funds, must keep separate accounts, be managed separately, and be earmarked for specific purposes. They also clearly require that the long-term care insurance fund be included in the budget compilation scope for social insurance funds, that the fund’s revenue and expenditure budget be scientifically prepared, and that budget performance management be strengthened. At present, the Ministry of Finance is working with relevant departments to research and formulate financial management measures for the long-term care insurance fund and measures for the management of fiscal subsidy funds. This will further strengthen fund financial budget management, clarify the specific processes and supervision requirements for the allocation, issuance, and use of fiscal subsidy funds, and press down responsibilities at all levels to provide institutional safeguards for the safety, compliance, and efficient use of funds.

“Next, the Ministry of Finance will conscientiously implement the decision-making and deployment of the CPC Central Committee and the State Council, guide local finance departments to promptly and adequately allocate fiscal subsidy funds, strengthen financial and accounting oversight, and promote the steady rollout and implementation of the long-term care insurance system. This will ensure that the benefits of the policy reach every eligible covered person in a timely and efficient manner and will effectively ease the care burden on families of people with disabilities in carrying out daily activities,” Guo Yang said.

(Editor: Wen Jing)

Keywords:

                                                            Long-Term Care Insurance
                                                            Insurance