China has formally launched a national long-term care insurance program after a decade of pilot programs, establishing what it calls a "sixth pillar" of social security to ease the burden on families caring for a rapidly aging population.

The framework, issued in a joint guideline by the general offices of the Communist Party of China Central Committee and the State Council, sets a three-year target to build a unified system covering the entire population, regardless of employment status.

It follows pilot programs that have covered more than 3.3 million disabled individuals and reduced caregiving costs by over 100 billion yuan ($14.5 billion), according to official data.

The insurance is designed to provide services and financial support for daily and medical care for people with sustained disabilities, typically lasting six months or more. The rollout will start with severely disabled individuals and expand over time.

For disabled individuals, the program addresses a fundamental need, officials said.

"Through professional care, we can dramatically improve their quality of life," Wang Wenjun, deputy head of the National Healthcare Security Administration, told a news conference Thursday. "Bathing, haircuts, eating, dressing changes — these are no longer distant hopes for those confined to a sickbed, but rather bedside, accessible, attentive care."

Funding will come from employers, individuals and government subsidies under established rules, with a unified total contribution rate of roughly 0.3 percent. The program also allows personal medical insurance accounts of employed workers to cover premiums for immediate family members.

A key principle of the new insurance is urban-rural integration, Wang said. "Whether participants come from rural or urban areas, they all draw from the same fund pool and receive the same benefits."

The insurance also serves as an economic driver for related industries, she added. "The establishment of this system has given rise to new business forms and models and nurtured economic growth drivers," she said, citing the development and leasing of assistive devices, dependency-level assessments and private-sector participation in program administration.

Since pilot programs began in 2016, the insurance has drawn more than 60 billion yuan in private capital into related sectors, according to Wang.

The program is part of a broader effort by Beijing to address emerging demographic challenges through a nationwide safety net.