Nowadays, many people are living longer with better health.
But did you know that medical advances can also lead to living longer with a severe disability? According to a study conducted by OECD, greater longevity generally lead to increasing numbers of elderly people living longer with a severe disability, even though disability prevalence rates have declined in some countries.
Which means that increasingly the elderly need care for a longer time.
Who pays the costs of this care?
In Japan, the government bears the bulk of the health care spending and long term care costs (LTC). The LTC system operates on a generous social insurance system. The Japanese government projected the cost of LTC services would rise from 1.6% of GDP (JPY7.9 trillion) in 2010 to 3.3% of GDP by 2024 (JPY19.7 trillion).
Fiscal sustainability for such a system is a big challenge!
What's on the government's mind? To increase co-payments or reduce access to services. What's on your mind? Are there other ways to approach this challenge?
Category: Funding longer lives: Long-term care