China’s deepening aging and the increasing burden of household elderly care may adversely affect consumption，as how to promote household consumption while maintaining the health of the elderly is a practical problem faced by China in the process of deepening reform. Based on data from the China Health and Retirement Longitudinal Study(CHARLS)，the effect of long-term care insurance policy on household consumption is evaluated using the difference-in-differences method. The results find that long-term care insurance policy has a significant positive effect on household consumption；the heterogeneity test shows that urban and east-central regions are more affected by the policy than the control group and the effect tends to expand. Further study finds that the mediating effect clearly reveals the transmission mechanism of“long-term care insurance policy— household income level—household consumption”. This paper identifies the mechanisms and transmission paths between long -term care insurance policy and household consumption，which helps bring into play the health and economic effects of long - term care insurance and provide valuable references for further deepening the reform of the health care system.