“Study Reveals Long-Term Care Insurance Reduces Hospital Costs and Improves Care,” by Lisa Kuhns, First Report
“Greater long-term care needs led to increased hospitalization costs of 5%. This is likely due to ‘social hospitalization,’ where people with disabilities stay in hospitals to receive care when other options are unavailable or inadequate. This issue has become increasingly pressing due to China’s rapidly aging population, with over 280 million people aged 60 and above by the end of 2022. However, the implementation of long-term care insurance helped counteract this effect. The insurance provides subsidies for home care and professional care services, allowing people with disabilities to receive care outside hospitals. This reduced unnecessary hospitalizations and overall costs.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
AI says: “In China, long-term care insurance (LTCI) is funded by a variety of sources, including medical insurance funds, government subsidies, individual contributions, and employer contributions. The majority of national elderly welfare-related expenditures are financed by the Public Welfare Lottery Fund, with roughly 25% subsidized by local governments and the remaining 15% from other sources.” Something tells me this will not be a richly funded operation or successful for the long-term. Too bad Genworth’s foray into private LTCI for China didn’t pan out.
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