Policy Effects Of Long-term Care Insuranc

China is currently experiencing accelerated population aging,leading to a growing concern over the care of disabled elderly individuals.Population aging brings forth a series of social issues,including a decrease in the working-age population and an increased social burden.Addressing population aging is an inevitable and crucial task for China’s present and future.Long-term care insurance,which focuses on providing professional nursing services and medical care expenses for disabled individuals,is one of the significant tools to address population aging.This study aims to analyze the policy effects of long-term care insurance through theoretical analysis and empirical examination,including its impact on healthcare funds and labor employment.Analyzing the policy effects on labor employment helps evaluate whether long-term care insurance policies can promote the development and growth of the nursing service industry,thus creating more job opportunities.Additionally,investigating the influence of long-term care insurance on healthcare fund surpluses reveals the extent of its impact on the financial status of healthcare funds,providing reasonable policy recommendations and adjustment directions as references for future comprehensive implementation of long-term care insurance policies.This paper begins with a theoretical analysis of the impact of long-term care insurance on labor employment and healthcare fund surpluses.Subsequently,the current status and existing issues of the long-term care insurance pilot program are analyzed.Based on this,the study employs the Propensity Score Matching-Differencein-Differences(PSM-DID)method to investigate the policy effects of implementing long-term care insurance,analyzing its influence on labor employment in pilot cities and its impact on healthcare funds.Finally,policy recommendations are presented.To ensure data availability,this study selects pilot cities of long-term care insurance as the treatment group and non-pilot cities as the control group.Propensity score matching is employed to balance potential confounding factors between the treatment and control groups.Subsequently,the matched data are analyzed using the difference-indifferences method,accompanied by parallel trend tests and placebo tests.The empirical results indicate that:(1)The long-term care insurance policy has improved labor employment in pilot cities.(2)As one of the primary funding channels for longterm care insurance,the healthcare fund’s current surplus in pilot cities is slightly reduced due to the policy’s impact.The results demonstrate that long-term care insurance is an effective measure to address population aging,alleviating the caregiving burden on the elderly and increasing their well-being.Finally,this paper provides suggestions for the inadequacies of China’s long-term care insurance policy: increasing the funding channels of long-term care insurance through diversified financing,encouraging the development of commercial long-term care insurance,issuing corresponding regulations to standardize care institution criteria and improve care quality,providing training for caregivers to enhance their professional competence and sense of professional identity,and enhancing top-level design and regulatory oversight of long-term care insurance.