China: Employers to contribute to long-term care insurance 

China: Employers to contribute to long-term care insurance
October 27, 2020

On 10 Sep 2020, the National Medical Security Administration expanded the long-term care insurance pilot scheme to 14 provinces and municipalities: Beijing, Tianjin, Shanxi, Nei Mongolia autonomous region, Liaoning, Fujian, Heinan, Hunan, Guangxi, Guizhou, Yunnan, Shaanxi, Gansu, and Xinjiang Uygur autonomous region. 


  • Eligibility and coverage. The pilot phase applies to individual participants covered by basic social medical insurance for workers. The scheme aims to meet the basic care needs of eligible individuals, and has prioritized individuals who are severely disabled, and persons who are elderly and disabled.
  • Premium payment principles. In principle, employers and employees pay an equal share of the insurance premium. The employer’s contribution is calculated on the amount of the employee’s total wages, and can be deducted from the basic medical insurance premiums during the initial phase (this is to avoid increasing the employer’s costs). The employee’s contribution is calculated on their income, and can be paid from the social medical insurance personal accounts.
  • Payment of insurance. The scheme’s main purpose is to cover the cost of basic nursing services provided by qualified institutions and personnel. Insured disabled persons can make payment claims if they have applied, been diagnosed and received medical treatment for more than six months. The policies are encouraged to offer payment options based on differentiated packages of care and support. 

Related resource

  • Guiding opinions on expanding the pilot scheme of long-term care insurance system (Chinese) (National Health Security Administration, 16 Sep 2020)

by Jingting Zou
Associate, Mercer                            

by Fiona Webster
Principal, Mercer’s Law & Policy Group

by Stephanie Rosseau
Principal, Mercer’s Law & Policy Group

Related insights