Exclusive: China to Launch National Disability Care Insurance System
By Zhou Xinda and Kelly Wang
China is poised to launch a national insurance system to provide care and financial support to disabled people as early as the end of this month, according to sources familiar with the matter, putting such services on a firmer financial footing as the country’s population rapidly ages.
The policy document outlining the system has been finalized by the relevant authorities and submitted to the central government for review, Caixin has learned. The national rollout, which is expected either at the end of this year or in early 2025, will expand on pilot programs that have been implemented in around 50 cities since 2016.
The policy would mandate contributions from both working and retired individuals, with payment standards varying by age, according to a researcher with extensive experience in long-term care insurance.
The system will likely adopt a proportional funding model, linking contributions to personal income, another insurance industry expert said. It would standardize service offerings and introduce third-party institutions to conduct disability assessments, they added.
From 2016 to 2023, 49 cities including Beijing and Shanghai launched pilot long-term care insurance programs. In 2023, around 183 million people participated in the programs and over 1.3 million people received related benefits, according to data the National Healthcare Security Administration (NHSA) released in July.
Long-term care insurance aims to cover essential services for disabled individuals, such as by providing caregivers and medical treatment, according to the NHSA. In pilot areas, it has covered services such as bathing assistance, at-home ulcer treatments and the cost of renting wheelchairs.
While some regions established programs with annual payments ranging from 30 yuan ($4) to 300 yuan coming from individuals, employers and government subsidies, many pilot cities relied heavily on existing pools of medical insurance funds rather than establishing independent funding sources.
The question of how the care system would be funded on a long-term basis remained a question during the pilot programs, experts previously told Caixin.
“Transferring medical insurance funds is just a transitional measure during the pilot phase. Independent funding channels must be established in the future,” the long-time researcher said.
Another industry insider told Caixin that the NHSA has convened a national meeting to launch the long-term care insurance system and has requested local governments expedite the establishment of the system.
As of the end of 2023, China was home to around 45 million disabled senior citizens, accounting for around 15% of people aged 60 or above, according to a report from state broadcaster CCTV.
China’s population of people aged 60 or older rose to nearly 297 million at the end of 2023, accounting for 21.1% of the country’s total. The number is expected to grow to over 400 million by 2035, according to previous estimates from the National Health Commission.
Contact reporter Kelly Wang (jingzhewang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Global Neighbours is authorized to reprint this article.
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