Does the Pilot Long-Term Care Insurance Work as Expected in China? Examining its Impact on Hospital Utilizations, Medical Expenses, and Health.

This study investigates the impact of long-term care insurance (LTCI) on older adults' hospital service utilization, medical expenses, and health. Using national representative data from four waves of CHARLS (2011, 2013, 2015, 2018), we find that LTCI decreases older adults' monthly outpatient visits but is associated with an increase in both annual inpatient stays and inpatient medical expenses. Further evidence suggests that older adults covered by the pilot LTCI program have better health status compared to their counterparts in non-pilot cities. Overall, findings offer empirical support for the role of the LTCI program in Chinese older adults' hospital service utilization, medical expenses, and health. Findings of China's LTCI may offer insights for other countries with a large aging population but with no feasible LTCI framework.