ABSTRACT
This chapter describes and analyses the development of long-term care (LTC) financing in different parts of China, in the light of the directives issued by the central government on LTC financing schemes. It summarizes the government directives which provide the framework for a more uniform development of LTC financing while allowing a certain degree of discretion on the part of local governments. The LTC insurance schemes of the first 15 pilot cities are analysed in greater detail in terms of the target population, the financing sources, and the contribution requirements. It then evaluates the financial sustainability of the different types of long-term care insurance schemes among the 15 pilot cities. The results show that most of the schemes in pilot cities can meet the LTC expenses of their severely disabled persons within the guidelines laid down in the central directives at the current moment. The shortcomings of some of the arrangements in the pilot cities are also discussed.
