International Comparison Of Long-term Care Insurance System

World’s population is ageing rapidly and in response, the long-term care insurance (LTCI) serving predominantly people aged 65 years and over is initiated to help frail older people and their families to lead more independent lives and to relieve the major fiscal burdens associated with the need of long-term care.The LTCI arrangements are in a stylish phase where they have been reformed into schemes for the last decades and welfare gains from being able to insure in most developed countries while challenges to the success of the system including dissatisfaction with market failure, participant’s adverse selection, moral hazard and low output are threatening the future of LTCI policies. Therefore, the evaluation of the LTCI system’s performance is significant and important for policy makers.This article discusses a comparison of the 3 LTCI system patterns-German generous system in terms of coverage, Japan’s social insurance principles concentrating on older people and America’s private LTCI framework, which tries to illustrate how the LTCI mechanisms to fulfill social corporate governance role of LTC. It seeks to make a general conclusion through an empirical examination which comes from UN HDR HDI calculation formula of the 3 LTCI model’s performances including efficiency, justice and sustainable development capability.With a systematic review, German LTCI pattern ranks No.l in operational efficiency, sustainable capability and comprehensive performance, and then it is learnt that German aggressive wide-coverage social insurance system is a good example of China’s LTCI policy development. Meanwhile, Japan and America’s models are good at more flexible participation form, and these two patterns are more suitable for initiative LTCI policy.