China to build new social insurance in 3 years for elderly care

China has officially launched a nationwide plan to establish a "long-term care insurance" system, aiming to provide a safety net for senior people. The government released a set of formal guidelines on Wednesday, marking the transition of this type of social insurance from local trials to a unified national framework.

At its core, long-term care insurance is designed to help people who can no longer take care of themselves due to old age, illness or disability. Unlike standard health insurance that pays for hospital visits and medicine, this new policy covers expenses for daily life assistance and basic medical nursing, ensuring that those who lose physical or mental autonomy can still receive professional care.

The system operates on a cost-sharing model involving the government, employers and individuals. For most participants, the premium is set at approximately 0.3% of their income. Instead of receiving a cash handout, eligible beneficiaries receive subsidized professional services. Depending on their employment status, the insurance will cover between 50% and 70% of the costs for home-based care or nursing home stays.

The push for a national system comes as China faces a demographic shift of unprecedented scale. Currently, the country has 320 million people aged 60 or above, with roughly 35 million classified as "disabled" or unable to perform basic daily tasks. For decades, the burden of care fell almost entirely on children – many of whom are from one-child families.

Before this national rollout, China conducted pilot programs in 49 cities nationwide. These trials have covered 300 million people and provided relief to over 3.3 million.