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China · Society

China: NDRC-led trio issues pricing guidance for affordable elderly care, with a three-tier system

· N GLOBE

On October 16, China's NDRC, Ministry of Civil Affairs and National Health Commission jointly issued guidance (NDRC Price [2026] No. 1476) sorting nursing homes into three tiers with differentiated pricing rules; all charges must appear in a published list, and nothing outside the list may be charged.

Why it matters

China now has 320 million people aged 60 or above — 23% of the population — but only 7.679 million nursing-home beds. Many seniors face a structural dilemma: quality facilities they can't afford, and affordable ones of poor quality. This is the first time the central government has systematically regulated how elderly-care prices are set, touching household budgets across the country.

Full report

On October 16, China's National Development and Reform Commission, Ministry of Civil Affairs, and National Health Commission jointly issued the 'Guidance on Further Improving the Price Formation Mechanism to Expand Quality Affordable Elderly Care Services' (NDRC Price [2026] No. 1476).

The guidance defines three categories of institutions with differentiated pricing for the first time at the national level: safety-net institutions (public homes mainly serving the destitute and low-income disabled elderly) — government-guided pricing for basic services, with free admission for qualifying residents; affordable-care institutions (publicly built homes open to the general elderly population, plus subsidized private ones) — government-guided pricing or published reference price ranges for basic services; and fully market-based institutions — market pricing, encouraging premium pricing for premium quality.

Charges are classified into basic service fees (bed and nursing care), non-basic fees, and home-visit service fees. Pricing follows a 'cost recovery plus reasonable profit' principle, with reassessments at least every three years.

To curb arbitrary charges, all fees must be published in a catalog; nothing outside the catalog may be charged. Community facilities with 10 or more full-time care beds are regulated like nursing homes; smaller ones and home-based services are market-priced, with optional official reference ranges for home-visit fees.

The NDRC said it will work with the other two ministries to guide local governments in implementing regional pricing policies, institutional classification, and fee standards.

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