With the accelerated population aging, optimizing the long-term care insurance system and service supply has become a key proposition for improving the social security system. As an institutionalized innovation in response to the silver hair wave, long-term care insurance has demonstrated remarkable effectiveness in safeguarding the health rights and interests of disabled elderly people, releasing the development momentum of families, and improving the social security system by establishing a professional care system. However, the long-term care insurance system is still in its early stage of development. During the implementation process, it is confronted with multiple predicaments such as fragmented systems, the absence of a hierarchical guarantee mechanism, low efficiency of resource integration, structural imbalance between supply and demand of nursing services, and weakened market supplementary functions. It is imperative to take the three-dimensional linkage of institutional innovation, technological empowerment, and market mechanisms as an important approach to build a long-term care system with full coverage, precise identification ofneeds, and professional stratification, and to steadily promote high-quality supply of long-term care insurance services, thereby facilitating the realization of the social governance goal of ensuring elderly care and providing high-quality care for the elderly.