Studies Of Long-Term Care Insurance Rates

The elderly population has been growing and the elderly dependency ration has been increasing, since China entered the aging society, our country is aging much faster than other countries. The birth rate continues to decrease, the family size is becoming smaller, more and more women go out to work, the rural young labor works in urban areas, young couples do not live with their parents, which make traditional nursing function of family members weaken. As living standards and medical technology improved, the average life expectancy of elderly extends. But the elderly are vulnerable to chronic diseases and need so much medical expenses, which bring tremendous economic pressure to themselves and state finance. In addition, the elderly probability of disability caused by chronic disease is much higher than ordinary people, that leads to the demand for care services is growing. Long-term care insurance is a new insurance for solving the problem of aging, which provide care services when old people cannot take care of themselves that caused by disease, accidents and loss of cognitive disorders. This paper studies on the problem of long-term care insurance rate that illustrates the financial viability of long-term care insurance from the point of insurance rate of contribution.The article has implemented a comprehensive comparison of foreign long-term care insurance model, our current demographic structure, economic development level and development of the insurance industry, that the long-term care social insurance model should be our best option. Based on Chinese Longitudinal Healthy Longevity Survey (CLHLS) data, this paper estimates the disability status of aging population and the scale of future disabled elderly according to forecast data of United States. The paper determines the payment mechanism and payment standards based on the depth comparison of Germany, Japan, South Korea in the nursing target, benefits people, nursing classification and payment standards. Then the article measures the cost of home care, community care and institutional care with the use of cost structure method, which combines with payment standards, utilization of care approach and estimated disability rate to calculate the needs of current and future total care costs. Finally, we treat all the urban and rural employment over the age of 16 as the insured, all wage income as the contribution base, measure out overall lever of rates with the use of fund balance under PAYG.According to whether the user share the total rates and the proportion (n=1,2,3) of enterprises and employees, the paper calculate the contribution rates of enterprises and employees under six situations. The results shows that the rate of the current range of enterprises to bear 0.46% to 0.765%, the rate of employees ranges from 0.23% to 0.51%. Due to differences in rural and urban wages, urban employment should monthly pay 8 to 17.8 yuan, rural employment should monthly pay 2.6 to 5.7 yuan, which are both in the affordable range. The rate of enterprises will reach 2.01%, the highest rate of employees will reach 1.34% in the year of 2050, that will be a lot of pressure on enterprises and employees. Aim to solving the possible current problems and operational issues, the article raises some referential policy suggestions.