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KMID : 1138920080070010075
Health Insurance Forum
2008 Volume.7 No. 1 p.75 ~ p.92
A study on reforming of the Long Term Care public financing and expenditure : In UK, Japan, Sweden and Germany
Roh Sang-Youn

Lee Dong-Hun
Abstract
This paper examines the reform of the Long Term Care Systems in four OECD countries (UK, Japan, Sweden and Germany). In the UK, provision is means tested, so that out of pocket payments depend on levels of income, savings and assets. In Sweden, where the system is wholly tax-financed, provision is essentially free at the point of use. In Germany and Japan, provision is financed from recently introduced compulsory insurance schemes, although the details of how each scheme operates and the distributive consequences differ somewhat. The paper also compares the effects of the four countries¡¯ systems for financing the Long Term Care, the distributive consequences and the tax burden. It finds that the four systems would be an improvement on the future KOREA system, because it uses a regressive method of financing. Therefore, the discussion of possible alternatives to the planned our system could be restricted to a general tax-based system as used in Sweden or the compulsory insurance system as used in Japan. The results suggest that all four systems would imply increased taxes and standard premium.
KEYWORD
Long-term care, Public financing, Public expenditure, Premium
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