IDEAS home Printed from https://ideas.repec.org/a/bla/ijhplm/v40y2025i4p923-934.html
   My bibliography  Save this article

Can Private Insurers Stimulate the Function of Public Long‐Term Care Insurance? Insights From China

Author

Listed:
  • Yu Yan
  • Michael G. Faure

Abstract

In many countries, including China, private insurers are increasingly involved in public long‐term care insurance (LTCI) to stimulate its functioning. Our article examines this novel approach from an economic perspective. We then use this framework to evaluate the risk differentiation and control practices of China's 15 LTCI pilots. Using these practical cases, we find that the private insurers' strategies for risk differentiation and control of adverse selection should be restricted, as they may contradict the public policy goals of solidarity and equal access to long‐term care. Conversely, the strategies to address moral hazard, particularly in case of small risks and when carefully designed, could better reconcile the public policy goal with the economic goals of cost reduction and providing incentives to avoid overutilisation. Overall, a better strategy may enable private insurers to efficiently utilise their risk management capacity, without severely undermining the public aims of LTCI.

Suggested Citation

  • Yu Yan & Michael G. Faure, 2025. "Can Private Insurers Stimulate the Function of Public Long‐Term Care Insurance? Insights From China," International Journal of Health Planning and Management, Wiley Blackwell, vol. 40(4), pages 923-934, July.
  • Handle: RePEc:bla:ijhplm:v:40:y:2025:i:4:p:923-934
    DOI: 10.1002/hpm.3933
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hpm.3933
    Download Restriction: no

    File URL: https://libkey.io/10.1002/hpm.3933?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ijhplm:v:40:y:2025:i:4:p:923-934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0749-6753 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.