Call For 'Radical Overhaul' Of Funding Of Long-Term Care In The UK

Main Category: Health Insurance / Medical Insurance
Also Included In: Seniors / Aging
Article Date: 18 May 2009 - 5:00 PDT

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A new model for the funding of long-term care for older people is needed in the UK, delegates at the Actuarial Profession's Health and Care Conference in Glasgow heard today.

In a workshop titled 'Who cares?' Reforming long-term care, University of Birmingham Health Services Management Centre co-director Jon Glasby said the current system placed an unfair burden on individuals.

Professor Glasby said alternative methods of funding long-term care that needed to be discussed included:

- introducing compulsory long-term care insurance;
- abolishing long-term care fees;
- drawing on value of homes through equity release.

Professor Glasby said he hoped the government's Green Paper on care and support, due this year, would provide an opportunity to stimulate debate on the issue and lead to an overhaul of the system.

He said: "There is the risk that we retain the status quo, with a few tweaks, but I believe the existing system needs a radical overhaul to fund long-term care for older people. It is a fundamental personal and political issue that is at stake and we really need to think and talk about where we may go next.

"I personally think that it does not make sense that we distinguish between people who are 'sick' and those who are 'frail' or 'disabled'. One service is free and the other is means-tested, which has significant implications for who pays and who provides. It does not make sense that someone who has cancer and is being treated in a hospital pays nothing, while someone who is in a care home and being treated in a similar way for Alzheimer's is charged for their care. It is not meaningful to have a separate system of health and social care."

Professor Glasby said that he did not agree with the argument that the government cannot afford to fund long-term care.

He said: "Some people might say that we cannot afford to fund long-term care, but anything is affordable if we choose to pay for it. If enough of us decided that it was important enough, it could be done."

The conference for Health and Care insurance actuaries is at the Hilton Glasgow between 13 and 15 May.

Notes

1. Actuaries provide commercial, financial and prudential advice on the management of a business's assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.

2. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd's.

3. The Profession is governed jointly by the Faculty of Actuaries in Edinburgh and the Institute of Actuaries in London. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.

4. The Profession is available to provide expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.

Source
Actuarial Profession