Long-term care insurance becoming more popular

China is making strides in popularizing long-term care insurance, improving the quality of life for people who have lost the ability to perform daily activities and easing the burden on their families.

The National Healthcare Security Administration recently announced that by the end of 2024, more than 180 million people were covered by long-term care insurance, with 2.6 million individuals receiving benefits. The program, which began its trial phase in 2016, now covers 49 cities, including Beijing and Chengdu, capital of Sichuan province.

Long-term care insurance is designed to assist people who are unable to perform basic daily activities such as eating, bathing or dressing due to aging, injury, illness or mental deterioration. Participation in the insurance program is voluntary.

Experts say the insurance is an important supplement to China's existing social insurance system, which includes pension, healthcare, work-related injury, unemployment and maternity coverage.

Local governments have pushed for broader implementation of long-term care insurance to address the aging population and improve the quality of life for impaired people.

In Ningbo, Zhejiang province, the program expanded from 2017 to 2023, eventually covering the entire city. Hangzhou and Huzhou, two other cities in Zhejiang, fully implemented the program last month, allowing local residents to join for an annual payment of 90 yuan ($12.35).

Before receiving benefits, insured individuals must undergo a scientific evaluation by professional workers to assess their abilities in areas such as mobility, eating, bathing, cognition and communication.

Despite its progress, the expansion of long-term care insurance faces several challenges, including a shortage of certified long-term care workers and reluctance from some people to pay for the insurance.

According to the Ministry of Civil Affairs, China's elderly population — people age 60 and above — reached 297 million by the end of 2023, and the proportion of these individuals who have lost the ability to perform basic living tasks has risen in recent years. It's estimated that 46 million elderly people will lose such abilities by 2035, with the number rising to 58 million by 2050.

However, the number of certified nursing workers remains around 500,000, while the demand for such workers is estimated to be 10 million, according to state broadcaster China Central Television.

Li Yanqing, a 28-year-old nursing worker in Shanghai, said the demand for nursing talent will continue to increase due to the growing elderly population. She pointed out that issues such as low social recognition, low pay, physically demanding work and unclear career advancement have caused many colleagues to quit in recent years.

"I plan to get the official certificate of long-term care worker," Li said.

Fan Weidong, an official with the National Healthcare Security Administration, said at a recent news conference that the administration is working to establish a long-term care insurance system that alleviates the financial burden on individuals and families.

"The implementation of long-term care insurance has created about 300,000 jobs and attracted approximately 60 billion yuan in social and industrial investment," Fan said. "We will continue exploring ways to involve commercial healthcare insurance and social organizations in expanding coverage, and encourage local authorities and companies to develop smarter, more digitalized services for people with impaired living abilities."