2023
Bahnsen, Lewe; Wimmesberger, Florian
Curbing the Demographic ‘Drifting Dune’ in Long-Term Care Insurance Financing: The Case of Germany Artikel
In: International Social Security Review, Bd. 76, Ausg. 1, S. 35-56, 2023.
Abstract | Links | BibTeX | Schlagwörter: demography, generational accounting, intergenerational burden sharing, Long-term care insurance, sustainability
@article{Bahnsen2023,
title = {Curbing the Demographic ‘Drifting Dune’ in Long-Term Care Insurance Financing: The Case of Germany},
author = {Lewe Bahnsen and Florian Wimmesberger},
url = {https://onlinelibrary.wiley.com/doi/full/10.1111/issr.12315},
year = {2023},
date = {2023-03-13},
urldate = {2023-03-13},
journal = {International Social Security Review},
volume = {76},
issue = {1},
pages = {35-56},
abstract = {Long-term care provision and financing are becoming increasingly important matters in all ageing economies. Therefore, a major challenge for policy makers is to strike a balance between adequate care and sustainable financing. In this study, we evaluate the proposal of a so-called sustainability factor in German long-term care insurance. Considering changes in the beneficiary-contributor ratio, it aims for a rule-based consideration of demographic dynamics to alleviate pressure on long-term care financing. Using the framework of generational accounting, we demonstrate that this proposal could have a relieving effect on finances, depending on the share of involvement of current and future generations. It may offer an option for pay-as-you-go long-term care insurance systems worldwide that need to curb the impact of ageing societies. Therefore, this article addresses policy makers tasked with designing a sustainable financing model for long-term care insurance. It demonstrates that the sustainability factor represents a step towards sustainable finances and, thus, it might be one component of a more comprehensive reform package.},
keywords = {demography, generational accounting, intergenerational burden sharing, Long-term care insurance, sustainability},
pubstate = {published},
tppubtype = {article}
}
Long-term care provision and financing are becoming increasingly important matters in all ageing economies. Therefore, a major challenge for policy makers is to strike a balance between adequate care and sustainable financing. In this study, we evaluate the proposal of a so-called sustainability factor in German long-term care insurance. Considering changes in the beneficiary-contributor ratio, it aims for a rule-based consideration of demographic dynamics to alleviate pressure on long-term care financing. Using the framework of generational accounting, we demonstrate that this proposal could have a relieving effect on finances, depending on the share of involvement of current and future generations. It may offer an option for pay-as-you-go long-term care insurance systems worldwide that need to curb the impact of ageing societies. Therefore, this article addresses policy makers tasked with designing a sustainable financing model for long-term care insurance. It demonstrates that the sustainability factor represents a step towards sustainable finances and, thus, it might be one component of a more comprehensive reform package.