Financing Channel Of Social Long-term Care Insurance:Experience,Difficulties And Future Choices

With the development of the economic society,aging of the population gradually become serious at present and will accelerate developing in the future.Meanwhile,the number of senior people who need to be taken care of is raising substantially.Governments around the world have taken measurements to cope with this social phenomenon effectively by the establishment and development of Long-Term Care Insurance.In China,dramatically increasing demand of daily-care and healthcare among elder people is even exaggerating because of the massive population and the smaller family size currently with the flourishment of urbanization and industrialization.Therefore,it is the most significance during Chinese social development that the life quality of senior people can be improved and the careers planning to resolve aging can be done under these circumstances.This article suggests some possible approaches of fundraising for the social Long-Term Care Insurance,which has not been established yet in China due to the financial problems.Thus,it is important to get enough financial help with proper methods to successfully release Long-Term Care Insurance in the future.In the first place,the concept of Long-Term Care Insurance and the approaches of fundraising will be defined by,Theory of Maslow's Hierarchy Needs,Personal or Family Responsibility Theory,Tax Liability Theory,Public Nursing Insurance Responsibility Theory,the Empirical Research Methodology,the Standard Methodology and the Compare Methodology.Then,based on the examples in other countries and the result of experimental regions in China,seven approaches of fundraising for Long-Term Care Insurance will be suggested,including financial subsidies from both central and local governments,fund of medical insurance,enterprise fee,personal fee,housing fund,reverse mortgage and social support.Finally,the dilemma and difficulties of fundraising will be analyzed from six aspects-lack of legal basis,bias of understanding of current policy and execution,uncertainty of fundraising rate and methods,failure of system formation in experimental regions,lack of realization of individual insurance participation and low will of payment.In the end,we will indicate the policy advices and future choices of Long-Term Care Insurance.First,Long-Term Care Insurance will be mainly rely on government subsidies,enterprise fee and personal fee,and also supported by medical insurance,reverse mortgage and housing funds following by the last aids of social support.Second,we will propose the policy advises to improve the legal basis,to correct the understanding of current policy and execution,to ensure the fundraising rate and methods,to summarize and systemize the result of experimental units,to encourage the senior participation in insurance and to make the payment in the end.The ILO model and related theory are being used to calculate the approximate proportion of payment by government,enterprise and individual,which is 6.24%,2.25%and 3.53%respectively.Third,the total payment will be estimated and compared with the current healthcare fee to conclude that the total payment will be higher than the current balance in order to ensure the reasonability of proportion of the payment.