"Make it better" | Long-term care insurance nationwide rollout: who pays, who benefits, and how to get reimbursed? An in-depth explanation

Have you all heard? Long-term care insurance, also known as “LTCI,” is going to be implemented nationwide!

LTCI is primarily designed to provide care services and financial security for individuals who are unable to take care of themselves due to disabilities or dementia. In simple terms, when you grow old and can’t move, the government helps you solve the questions of “who will take care of you and how will they do it.”

The biggest difference between LTCI and health insurance or pension insurance is that LTCI covers everyone, regardless of whether you are employed, retired, or a rural-urban resident; everyone is in the same protection pool. The larger the group, the stronger the risk resistance, and it better reflects the social security concept of “mutual help and assistance.”

Now let’s talk about who pays and who benefits.

Employed workers contribute 0.3% of their salary, with the employer and employee each paying half. Rural-urban residents contribute based on the local average income, with individuals and the government each covering half; at the initial stage, individuals only need to pay around thirty-something yuan a year. Additionally, retirees will also have to contribute, as the vast majority of disabled individuals are elderly, and rights and responsibilities must be balanced. Minors under 18 do not have to pay; they can enjoy benefits by following their parents.

At the beginning of the system, it mainly covers “severely disabled individuals,” meaning those who are bedridden for a long time and need assistance for eating, dressing, and using the toilet. In the future, as conditions mature, it will gradually expand to include those with moderate disabilities.

How does LTCI reimbursement work?

LTCI generally does not provide direct cash payments, but reimburses through services provided by designated institutions.

There are three options: first, home care, where the institution sends someone to provide services at home; second, going to a community day care center; third, staying in a designated long-term care institution. Considering that many elderly people prefer to age at home, the policy also encourages home and community care, with reimbursement rates leaning in that direction.

The nationwide implementation of LTCI is really good news for ordinary families, especially for those with elderly relatives who are disabled.

Aging at home with guaranteed care is becoming more and more secure.

Host: Sun Liang

Video: Deng Yunfeng

Planning: Man Qianqian