Sanpower Group
Private Enterprise Group in the Fields of New Health and New Consumption
Economic Daily - China Economic Net, Beijing, March 7 – “We are currently facing the growing elderly care needs of an aging population. Although there are enterprises providing home-based elderly care services, the development of the elderly care industry will be hindered if payers are lacking.” Yuan Yafei, a member of the National Committee of the Chinese People's Political Consultative Conference and Chairman of Sanpower Group Co., Ltd., suggested strengthening the linkage between long-term care insurance (hereinafter referred to as “long-term care insurance”) and home-based elderly care services, and promoting the integration of commercial long-term care insurance with home-based elderly care.
“Home-based elderly care is also the most preferred model for Chinese seniors. Older adults are generally reluctant to move into nursing homes; they prefer to remain in their own homes, reflecting a robust demand,” introduced Yuan Yafei. China launched pilot programs for its long-term care insurance system in 2016, achieving certain results in some regions. However, community-based home care services have not yet fully realized their potential, resulting in a mismatch between the extensive demand for home-based care among the elderly and the currently limited service provision.
In this regard, Yuan Yafei suggests strengthening the service linkage between long-term care insurance and home-based elderly care. Currently, long-term care insurance is led by the healthcare security and human resources and social security departments, which has to some extent addressed the issue of elderly care. Home-based elderly care, led by the civil affairs department, serves as a safety net for the elderly. There is partial overlap in the services provided by these two systems, preventing them from forming an effective complementary relationship. It is recommended that the civil affairs and healthcare security departments enhance coordination and communication. On one hand, they should clearly categorize and establish standards for home-based elderly care and long-term care insurance programs; on the other hand, they should re-evaluate service recipients to truly ensure that the elderly receive proper care and support.
Yuan Yafei stated that he hopes to further guide the integration of commercial long-term care insurance with home-based elderly care, so as to meet the multi-level and diversified needs of the elderly. It is essential to establish a sound insurance mechanism and leverage the role of commercial insurance. In view of the vast market for home-based care, it is recommended to guide market resources, introduce tax incentive policies for commercial insurance in a timely manner, encourage more commercial insurers to enter the field of long-term care insurance, and develop and promote innovation in commercial long-term care insurance products and services. We should make full use of the extensive service and operational management expertise of home-based elderly care companies, and encourage commercial insurance institutions to strengthen strategic cooperation with elderly care service providers. Meanwhile, commercial insurers are encouraged to increase investment in the elderly care sector and actively participate in the development of long-term care insurance. Only through the combination of commercial insurance and long-term care insurance can we provide the elderly with more high-quality elderly care services.