Health insurance is not mandatory and LTC insurance is not available in Hong Kong. As a result, most of the LTC service in Hong Kong is financed by the government. Other than the government’s direct budget for LTC, it is partly covered by other mechanisms, but still indirectly from the government. For public LTC service, the Government finances it by direct budget allocation. For private LTC service, if the user is a Comprehensive Social Security Assistance Scheme (i.e., major social protection scheme in Hong Kong) recipient, the service cost will also be covered by the Government through social security payment (i.e., indirect subsidy). Around 80% of those using non-subsidised Residential Care Service are on Comprehensive Social Security Assistance Scheme (Working Group on Elderly Services Programme Plan, 2017).

References:

Working Group on Elderly Services Programme Plan, Elderly Commission of Government of Hong Kong SAR,. (2017). Elderly Services Programme Plan. Hong Kong: Elderly Commission of Government HKSAR Retrieved from https://www.elderlycommission.gov.hk/en/download/library/ESPP_Final_Report_Eng.pdf.