Called the "Starbucks China Parent Care Program," the insurance plan will cover more than 10,000 parents of the coffee giant's Chinese employees, the company said in a press release.
Only the parents of employees who have worked with the company for a minimum of two years qualify for the health insurance program. The policy also stipulates that employees' parents have to be below 75 and live in China in order to qualify for coverage.
Treatment for 30 critical illnesses that afflict the elderly in China will be covered by the policy, Starbucks said.
The insurance provider involved in the initiative is the state-owned China Taiping Insurance, Chinese state media outlet Xinhua reported. Starbucks did not reply to emails sent after office hours by CNBC to verify that information.