Incorporating discrete choice experiments into long-term care insurance policy decisions: Evidence from China

Rapid population aging has prompted most emerging economies to consider introducing long-term care insurance (LTCI) as part of a comprehensive social health protection scheme. We examine discrete choice experiment (DCE) evidence from LTCI and evaluate several relevant attributes, including the elimination period, maximum monthly benefit, out-of-pocket rate and annual premium. The study uses a mix logit model to elicit respondents’ preferences and willingness to pay (WTP) for these attributes of LTCI and uses physical health status to assess heterogeneity in responses to insurance choice. We found that most respondents would consider purchasing LTCI, with respondents most preferring the following attributes: 1) a out-of-pocket rate of 25%, 2) a maximum monthly benefit level of 2000 CNY (about 296 USD), and 3) three months elimination period. The study can provide a reference for further adjustments to the existing scheme, increasing residents’ willingness to participate in insurance and promoting the sustainable development of long-term care insurance.