Com­pul­sory long-term in­sur­ance is likely

China Daily (Canada) - - NEWS CAPSULE -

To defuse a de­mo­graphic “time-bomb”, China is very likely to in­tro­duce com­pul­sory long-term care in­sur­ance to cope with ever-in­creas­ing care needs, par­tic­u­larly for the el­derly, said a na­tional po­lit­i­cal ad­viser.

China has an in­creas­ingly aging pop­u­la­tion cou­pled with surg­ing chronic dis­eases, and “it’s the right time to in­tro­duce such a new so­cial in­sur­ance pro­gram as a pre- emp­tive ap­proach,” said Hu Xiaoyi, head of the China So­cial In­sur­ance As­so­ci­a­tion, on the side­lines of the two sessions.

China has 150 mil­lion peo­ple aged 65 and older, with at least 40 mil­lion of them par­tially and fully dis­abled.

To leave such el­derly peo­ple fully de­pen­dent on their chil­dren for long-term care is, in Hu’s opin­ion, un­re­al­is­tic.

China has five so­cial in­sur­ance pro­grams — el­derly care, health, un­em­ploy­ment, work in­jury and ma­ter­nity.

They are run by the gov­ern­ment, and pre­mi­ums are paid by the in­di­vid­ual and the em­ployer on a com­pul­sory ba­sis. Hu ex­pected long-term care would be the sixth.

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