Overseas and domestic progress in researches on financing mechanism for long-term care insurance

With the increased population aging in China, the demand on long-term care for disabled elderly is increasing rapidly. To deal with the situation, it is critical to establish a long-term care insurance (LTCI) system suitable for the Chinese context and financing is the core for both the development of the LTCI system and the foundation of the insurance funds. How to construct a fair, reasonable and sustainable financing mechanism is the primary problem for the establishment of an LTCI system. Compared with those in foreign countries, the domestic researches are with more traditional methods and lack of systematic evaluation on the LTCI financing model and quantitative research, such as policy simulation, on financing level in terms of security level. Future researches in China should focus on the fairness, efficiency and sustainability of LTCI to provide evidences for the establishment of a sustainable financing mechanism. This study summarizes the progress in overseas and domestic researches on the LTCI financing mechanism.