Does income matter for the policy effect of public long-term care insurance on informal care use in China? A quasi-experimental study.

OBJECTIVE: Since 2016, the Chinese government has been piloting a public long-term care insurance (LTCI) scheme. This study examined whether the LTCI scheme reduced the use of informal care and how this has varied across income groups.

METHOD: We used data from the 2011, 2014, and 2018 waves of Chinese Longitudinal Healthy Longevity Survey, focusing on community-dwelling older adults aged 65 years and older. We used staggered difference-in-differences analyses with propensity score matching to examine the effects of the policy.

RESULTS: The LTCI scheme reduced the probability and intensity of informal care use by 5.7% ( p < .05) and 17.4% ( p < .05), respectively. The policy impact was limited to older people in the middle-income group, reducing the probability and intensity of informal care use by 15.6% ( p < .001) and 43.1% ( p < .05), respectively. We did not find a statistically significant policy effect for older adults with high or low incomes.

CONCLUSIONS: The LTCI scheme had different effects on reducing the informal care burden for family caregivers by income level. We suggest that the scheme should entitle people with low incomes to a preferential co-payment rate, thereby enhancing their access to formal care.