A Study of the Rate of Long-term Care Insurance
Wei Wang, Youchun Tang, Qian Liu

Abstract
As the first region in China that joins the aging society family, Shanghai now faces a very serious long-term care problem. One of the most grievous challenges of Aging is the large amount of people who are at advanced age or disabled. All of those make the demands of long-term care increase swiftly. But at present, the supply of long-term care apparently can’t meet the demands. This contradiction between supply and demand has now become the issue that effects the development of Shanghai. While we are working hard to build a harmonious society and satisfy the old people’s demand, to establish LTCI system is now an important way to ease long-term care services pressure. Mechanism is the key point of designing LTCI. In the previous study, we use actuarial models to calculate the rate of LTCI, but as the first several years after the system was established there must be some insured that pay less. The rate of LTCI fund must be adjusted appropriately during the transition to the arrival of the peak of aging. This paper takes the operation condition of LTCI fund before the arrival of peak of aging as the entry point and establish SD model for simulation of financial operations. At last, we give some proposals of optimizing the rate system of LTCI.

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