Research On The Financing Mode Of Long - Term Care Plan In Taiwan And Its Reference Significance

China’s aging population situation is worsening. The Fifth Plenary Session of the 18 th CPC Central Committee proposed to explore the establishment of long-term care insurance system. China Taiwan has common culture with Mainland China, it has a high degree of aging, and it explored system of long-term care earlier. So China Taiwan is a good case study. Although Taiwan formed a relatively complete system of long-term care services, but long term care funding model in China Taiwan is not sound and which is also a controversy. This provides a good speculative perspective for Mainland China.Dispute of financing model focuses on two perspectives which is using insurance model to finance or using tax model to finance. By comparing the insurance model proposed by the Kuomintang and the tax model advocated by the Democratic Progressive Party, it finds that the advantage of insurance model is more sustainable due to multi-funding, the disadvantage is public resistance to mandatory payment, and is prone to induce consumption and increase costs. A simulation study in China Taiwan showed that tax model has much heavier burden than insurance model.It finds that, when China Taiwan failed to resolve the financing model dispute to establish funding system, it used very effective funding mechanisms with transition plan, which were “Pilot Project” and “Long-term care ten year plan”. The transition plan set up the overall budget target, and established funds from the government budget which is relatively stable and uniform financial resources. After years of exploration in the transition plan, China Taiwan has basically sorted out the cost of long-term care services, established a relatively perfect service network and manpower reserve. This established a foundation for long-term care legislation and financing model selection. In addition, Taiwan alone to develop a "long-term care services law", reformed according to law, operated the long-term care system regulately, and formed a single window management mechanism. These strongly enhanced the management efficiency and improved the service network. Moreover, China Taiwan mainly drew on the experience of Germany and Japan in the long-term care insurance planning, and fully considered the income distribution factors and multi-funding mechanism, and also the principle of differentiation and step by step.It holds that China Taiwan government’s social management mode with long term low tax burden set aside a lot of space for the tax model financing and insurance model financing. This is also one of the reasons for the existence of controversy. It also holds that there is a positive correlation between the financing model of long-term care plan and the financing model adopted by the health care system. China Taiwan’s current financing model in health care system mainly draws on the health insurance funding models in Germany and Japan. The insurance system may be more suitable for China Taiwan, in terms of the international experience in the health care financing model. It finds that the case study of China Taiwan is of great significance to Mainland China form following three aspects. The first is to establish a service mechanism by considering the differences between urban and rural areas. The second is to establish the financing mechanism with transition plan. The last is that separate legislation of long-term care service promotes the reform of the system.To make comparative study based on the reality of China, it selects long-term care financing practices firstly promoted in Qingdao and Nantong as examples. It holds that Qingdao mode is nominally called long-term medical care insurance. Its essence is not insurance financing mode but similar to the financing mode of the transition plan in China Taiwan.The financing mode of the transition plan has the drawback of unsustainable funding sources. Nantong Model established a relatively perfect long-term care insurance financing mechanism. But in the context of enterprise dropping fees in China, the enterprise did not participate in the fund raising, only the government and individuals to raise funds. Therefore, the burden of government and personal is heavy, and the sustainable development is in doubt.It holds that the transition plan following medical of Qingdao is worth learning. Qingdao model not only proves that the establishment of a mixed service mechanism for urban and rural areas is feasible, but also to find out the situation of social demand and supply. This establishes the basis for further implementation of independent long-term care insurance. It also holds that it is worth learning from setting up independent long-term care insurance in Nantong. Nantong model shows that the establishment of long-term care insurance in China is basically feasible in the system. But there are problems in the sustainable development of the two modes of Qingdao and Nantong. The essence of Qingdao financing model is not the insurance financing model but the financial transfer mode. Nantong long-term care insurance financing model does not have the role of enterprises, not design income distribution mechanism, not play a supplementary role of commercial insurance, not cover urban and rural areas. Therefore, the social endurance of two models did not really test. And sustainable financing mode of long-term care insurance is to be explored.