Research On The Institutional Design Of The Long-Term Care Insurance In Shanghai

As China’s first area which entered into an aging society, Shanghai develops fasterthan any other areas in China, both in the degree and the rate of aging. Aging brings us animportant issue that the number of the oldest older and disabled older grows so fast. Thedemand of long-term care grows so fast.The demand of long-term care grows so fast, while the development of aged careservices is lagging behind. The contradiction between the supply and demand of thelong-term care becomes a major issue to resolve. As the economic developed, and thesocial progress, the requirement of the old people, it is an important way to solve theproblem.This study based on the introduction of the long-term care insurance in the UnitedStates, Germany and Japan. Learn from those institutions and design Shanghai’s long-termcare insurance. Refers to the institutional design of long-term care insurance, I will use ofsocial welfare theory, the supply of public goods theory and the theory of external effectsof long-term care insurance system model and development model of nursing serviceswere designed; in determining the cost-sharing mechanisms, pay people, base priceadjustment payment under the premise of such actuarial principles on the use of long-termcare insurance contribution rate was roughly estimated; to learn the advanced experience ofother countries on the basis of long-term care insurance coverage, protection andenjoyment of the design conditions.In order to test system design is reasonable, long-term care insurance fund balanceamount as the starting point, using system dynamics, and the establishment of long-termcare insurance fund operating system dynamic model of the aging peak before the arrivalof long-term care insurance fund operations simulation conditions. In the system for long-term care insurance fund balances for the main factors affecting long-term careinsurance both income and expenditure, the revenue side, select the individuals and units topay the premiums, the Government allocated according to a fixed percentage of GDP,financial subsidies, operating income of the Fund’s investment elements of the three effects;in the fund’s expenditures, selected long-term care expenses and fund management feespaid to two factors. After simulation found that even at a lower level of protection, the1.15%contribution rate can not maintain the sustainability of the system. To make sure thefund’s normal operation, this study will adjust the payment rate and the proportion of thefinancial investment. According to the sensibility analysis, chose a reasonable combinationof payment rate and the proportion of financial investment.Long-term care insurance system many have many import affects in many aspects. Itis a complicated systems engineering, we must make out an intact plan. First, make outcorresponding law to make sure the institution work. Secondly, three kinds of institutionsmoved together to make sure the long-term care insurance work. Thirdly, government,community, and the market work together to proved long-term care. Fourthly, consummatethe institution step by step. Fifthly, establish a multi-level long term care insurance system;Sixthly, broaden the sources of funds.