China's deepening aging and the increasing burden of household old-age care may adversely affect consumption, and 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, the effect of long-term care insurance policy on household consumption is evaluated using the Difference-in-Differences method, and it is found 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 shock than the control group, and the effect tends to expand; further study finds that the mediating effect clearly reveals that 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 can help bring into play the health and economic effects of long-term care insurance and provide useful references for further deepening the reform of the health care system.