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News... Insurance News 'Care insurance' planned for old
News... Insurance News 'Care insurance' planned for old
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Recent news headlines are reporting that older people in England could be asked to take out insurance to pay for long-term care in their old age. The idea is thought to be one option proposed by ministers in a green paper due on Tuesday on reform of funding of residential and home-based social care. The current means-tested system for elderly and disabled people is widely regarded as unfair with ministers going as far to call it a "cruel lottery". But the Tories said the government broken promises on the issue. The government admits the current system is struggling to cope with the huge pressures already being put on existing care services. Experts warn demand for social care is likely to intensify as the population ages. Protecting assets Under the present English system anyone with a home or savings of £23,500 or more is not given state funding for a care home or help from social services. This means that thousands of pensioners each year have to sell their homes or use their savings to fund their long-term care, which critics say is unfair and unsustainable. One option thought to be under consideration in the new green paper is for an insurance-based scheme which would allow people to protect their homes and savings. A range of payment options is likely to be set out, including deducting a single payment from the patient's estate after their death, or making several payments in advance during their working life. Other possible options could be a co-payment system, where the state pays for the first chunk of care, then the rest is means tested; or a social care tax, working in the same way as national insurance. Health Secretary Andy Burnham said the measures would ensure a basic entitlement for everyone. He told the BBC that "now that is a big step forward and it's not something we've been able to say before. "But under any of the options we'll be putting forward today that is what would happen. "We have got to end the cruel lottery with people selling their homes." Shadow health secretary Andrew Lansley said the green paper was unlikely to provide any firm conclusions. "If that happens, then the Conservative Party will bring forward its own proposal for the funding of long-term care. "Unlike the government, we will set out a clear plan for change for both the providers of social care and the 45,000 people who are forced to sell their homes every year to pay for it." Read the full article and join the debate regarding Long Term Care funding at: http://news.bbc.co.uk/1/hi/health/8148116.stm |
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