Faced with the rapid increase in the demand for aged care services in the aging society, Germany and Japan have set a precedent for solving the problem of elderly care for by constructing long-term care insurance. In the design of the nursing service delivery model, Japan adopts payment in kind, while Germany introduces cash payment. Based on the characteristics of the disabled or semi-disabled elderly, this paper uses economic theory to analyze the applicability of cash and physical payment. Through the comparison and analysis of OECD data, this paper summarizes the impact of the choice of nursing service model in Germany and Japan. Besides, combined with background of the implementation of long-term nursing insurance in China and different elderly groups, it’s optimal to introduce the cash payment method in the selection of nursing service models.
Long-term nursing insurance system; nursing service delivery model; in-kind payment; cash payment
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