A Proposal for a Voucher System for Long-Term Care in Hong Kong

Over the next three decades, due to a rapidly aging population coupled with the recent economic downturn, Hong Kong society will face severe challenges in establishing a sustainable aged care system. We identify four principles: the encouragement of family care, service integration, a mixed mode of financing, as well as a "small government and large market" approach to guide the development of aged care services. After a brief description of existing Hong Kong long-term care services for the elderly, we evaluate this service according to these principles. We examine how a proposed voucher system could tackle problems in the current system of long-term care. Finally, we propose solutions to alleviate the possible negative consequences of the voucher system and describe the essential preconditions for the full implementation of the system.