Construction Of Long-term Care Insurance System In China

With economic development and technological progress, the people's living standards and health conditions continue to be improved, human health awareness and the level of immunity to the disease are increasing, resulting in human average expectancy, from 1950 to extend for 20 years, reached 66-year-old, it is expected that will be extended for a period of 10 years by the 2050. While the implementation of population policy and concept change in the fertility, the baby birth rate is declining and the proportion of elderly population to entire population is rising. By 2050, The world's population aged 60 and above will be from 6 million to 20 million, the proportion of population is expected to double, from 10% to 21%. The United Nations are very concerned about the problem of population ageing. In 1991, the United Nations General Assembly adopted the "United Nations principles for older people", Specified care principles, namely, Health of the elderly in both humane, safe and reliable environment is protected and rehabilitation, pointed out that the elderly have care and social support; In 2002, Madrid held the Second World Assembly on Aging, decided to adopt the "2002 International Plan of Action on Aging,"demanded that the world must be concerns of older persons into national development frameworks and poverty eradication strategies, dealt with the challenge of population ageing in the 21st century,established formal and informal social support system, strengthen family-based care capacities of older people, ensured a favourable and supportive environment.In 2006, Aging Office in China issued "China's aging population trend forecasting report", pointed out that the 21st century China will be an irreversible aging society. By 2050, China's elderly population will exceed 400 million, aging level to more than 30%. Meanwhile, China's aging population also demonstrated two salient features:First, the elderly dependency ratio increased. In 2000, it was 15.6%, by 2050 rose to 48.49%. If we add to the custody of young children, the total dependency ratio rose even more rapidly, by 2050 rose to 76.8%, population aging will make the working-age population increasingly heavy financial burden; Second, Aging phenomenon was obvious. By 2050,80-year-old and above population will reach 9448 million, accounted for 21.78% of the elderly population. Chinese elderly aged grow quickly, severe problems of aging has become increasingly prominent. As a response to the aging, in 2006, China have promulgated the "development of China's Undertakings for the Aged, "Eleventh Five-Year"plan" and the"accelerating the development of old-age service" two framework documents, to improve the old-age service system and crack China's increasingly serious problem of population aging.In population aging society, the elderly population often accompanied with physical function declined and the increased possibility of suffering from chronic diseases, is the main demanders for long-term care. In future, long-term care demand and supply will become a pressing issue. Due to the community of industrialization, urbanization and the decline in fertility, The family structure become to be nuclear family from traditional extended family. The family that has fewer children on average will not be able to take care of the elderly population, and the traditional family-oriented social security network has lost the functionality of the elderly. Accordingly, the risk of the elderly care have not fully borne by the family, but non-market can also provide an appropriate long-term care needs, it evolves as a whole social risk from an individual risk, requiring Government allocation of national resources, the implementation of long-term care insurance and the institutionalization of development, so assisted traditional home care functions, and even extended long-term care provider. In accordance with United Nations standards, United States, Germany, Japan and other developed countries were the early aging society. To address the care needs of the elderly, help the elderly to raise funds to purchase care in full, and largely sought to ease the national pressure of demand on the public welfare and reduced the cost of the Government's long-term care expenditures, these countries have taken measures to deal with. Into the mid-20th century, Long-term Care Insurance system is a solution to the problem of the aged care, using the insurance principle to raise money, to speed up the nursing industry professional development, to resolve long-term care of the elderly.long-term care insurance system is a social insurance model in Germany and Japan. German forces nationwide for insurance, premiums by insurance and employer. Japan protects people aged over 40, premiums by the Government, employers and the insurance co-share target. America's long-term care can get from Medicare, Medicaid, Older Americans Act programs and commercial insurance, while the Medicare, Medicaid, Older Americans Act programs is the public welfare policy, the Government has to pay the full cost, but its protection does not cover the entire population; Thus in 1980, Private long-term care insurance has been introduced, intended to protect individuals from the huge long-term care expenditures and meet the diverse care needs of the people.In contrast, China's elderly population is huge, aging faster than developed countries, while the lower level of economic development, per capita income of just over＄1000. while the rural elderly in the economic can be described as empty-handed. At the same time, the proportion of elderly population in China's rural areas are big, so that the economic and demographic situation and the ever increasing cost of care will be in sharp contrast, individuals and their families can be easily constituted a heavy financial and emotional burden, the overall social, economic, political structure have a significant and long-term impact. So our country must deal with the financial issues from long-term care services, build up the appropriate long-term care insurance system, ensure China's continued economic development, national harmony and stability. This article first describes the concept of long-term care, long-term care insurance basic theory and protection, analysis of differences and connections between long-term care insurance and health insurance, pension and disability income insurance, clarify long-term care insurance is specifically designed for the allocation of risk; Secondly, this article according to the basic principles of economics, from the utility maximization perspective, drawing on life insurance demand theoretical models, build a LTCI theoretical model-three generations model; Third, the analysis of the experience of long-term care insurance development in he United States, Germany and Japan, Including its operational context, operational mode, protected content, regulatory policies, as well as the prospect, looking for the benefits of national policy, so it can provide useful reference for China's long-term care insurance; Fourth, the use of demographic, health economics, actuarial science and other theories, from a macroscopic point of analyzing the trend in long-term care service needs. In accordance with the sample survey data of China's National Bureau of Statistics in 2004 and the United States, Germany, Japan's long-term care system standards, by population model, mathematical models, we predict the long-term care services demand trends and overall expenditure, pointed out that China should be based on the elderly population and economic realities to explore appropriate development models of long-term care; Finally, based on international experience, combined with our economic underdevelopment, uneven development between regions, considered Government financial strength in China's different development stages, maintains that China should actively help to fund the care insurance funds by social insurance and commercial insurance, social insurance provide the most basic and necessary long-term care services or their costs, and as a universal compulsory insurance, while Private long-term care insurance are designed to meet the people in nursing diversity and multi-level needs.