Within welfare systems, health care is the expenditure that poses the most urgent problems for long term sustainability. Without policy interventions and structural reforms, its physiological tendency towards increases over Gdp will inevitably require access restrictions and cutting off of demand for services.
This paper highlights the need to renew the current health care financing scheme. In the presence of ageing populations and rising incidences of health care expenditures over Gdp, this scheme cannot remain fully in charge of the working income of active people (pay-as-you-go), if we want to avoid depressive effects on employment, investments and productivity. Such effects, besides hampering economic growth, would have a negative impact on health care itself, with resources becoming more and more scarce with respect to needs.
The financing scheme must become multipillar, with pay-as-you-go complemented by a private channel based on the real capitalisation of contributions. This channel would be capable of allocating savings, supporting productive investments and generating resources to be dedicated to health care.
The best structuring and concrete functioning of the private pillar is less clear and under discussion. This position paper puts forward an operational proposal: the open capitalisation fund for welfare should offer both pension and health care provisions through real accumulation of contributions on individual accounts, and should be linked to collective insurance coverage against major risks and lack of self-sufficiency.
This tool presents numerous positive characteristics, compared to the public pay-as-you-go monopillar as well as to a multipillar system in which the private component consists exclusively or mainly of insurance contracts. In fact, it is necessary to restrict the recourse to pure insurance coverage only to a limited group of treatments, because this kind of coverage is not equipped to deal with the dynamics of future expenses. As the difficulties American insurance companies are experiencing demonstrate, the pure insurance coverage ends up with the recurrence, in the private area, of the same defects as the pay-as-you-go in the public health care systems. Insurance pooling is not but a pay-as-you-go scheme applied over the group of insured members.
An open and conclusive debate is necessary.
Aviva Mind The Gap survey regional uk pensions gapcoussey
The document summarizes a report by Aviva that quantifies Europe's "pensions gap", which is the difference between the pension provision people need for an adequate standard of living in retirement and the pension amount they can currently expect to receive.
The key findings are:
1) Across the EU, the annual pensions gap is €1.9 trillion, or 19% of 2010 GDP. No single policy change can close the gap entirely on its own.
2) At an individual level, some people will need to increase savings by an average of €12,000 per year to fully close their personal pensions gap.
3) Non-pension assets, such as property, are only expected to
A preliminary assessment of the financial feasibility of basic income emily...Emily Van de Walle
The financial feasibility of unconditionally granting every citizen an equal fixed monthly income, known as basic income, is taken into scrutiny in this dissertation. This is achieved by a static cost estimation of a wide variety of basic income proposals as well as an assessment of the cost savings on the social security system that may be achieved through the introduction of basic income.
As per recommendation by my promoter, prof. dr. Erreygers, I am currently working on an article that is based on the findings of my master's thesis with the objective of having the article published in an economic scientific journal.
This document provides an overview of the social protection system in France. It discusses the origins of the modern social security system in France dating back to the late 19th century. It describes how the current system was established after World War II, combining elements of the Bismarck and Beveridge models. The social protection system in France is comprised of four main branches - illness, old age/retirement, family, and work accident/occupational disease. It is financed through social contributions and assigned taxes, and provides allowances and benefits to citizens to protect them against various social risks.
This document provides an overview of the European Social Fund (ESF) and compares it to the American Workforce Investment Act (WIA). It summarizes that the ESF provides €75 billion in funding to EU member states for projects related to employment and social inclusion. It also outlines the six priority areas that ESF funding supports. The document then introduces WIA as the American policy that provides employment services and compares some of its structures and goals to the ESF, such as targeting specific demographic groups and a focus on employment and human capital outcomes. It notes both similarities and differences between the two policies.
The document discusses unemployment benefits in the UK and considers replacing the current National Insurance system with mandatory private unemployment insurance.
Under the current system, the government provides unemployment insurance benefits through National Insurance contributions to help the unemployed maintain living standards. However, generous benefits could discourage seeking work. Private insurance could lower taxes but may not prevent drops in consumption for some and could fail like private health insurance due to issues like discrimination, information asymmetry, and moral hazard. Replacing public benefits with private insurance could recreate problems like disincentives to work and deny coverage to vulnerable groups.
In recent years, population ageing has attracted the attention of research and policy advisors in all European countries. Several policy actions have been directed toward ensuring optimal long-term care (LTC) for elderly people while maintaining fiscal rationality. LTC systems are very different across all European countries. Their design is characterized by diverse arrangements for the provision of care/organization and financing. Despite general concerns, the Polish LTC system is still at the bottom of the pile in terms of the organization and provision of care.
Authored by: Izabela Styczynska
No Longer a Purely Political Question: Challenging the Austerity Approach Thr...Gabriel Armas-Cardona
Reviewing the austerity crisis in Europe, the lack of human rights discourse, and how to promote economic, social and cultural rights in a similar context. Presentation given on April 8, 2016.
Aviva Mind The Gap survey regional uk pensions gapcoussey
The document summarizes a report by Aviva that quantifies Europe's "pensions gap", which is the difference between the pension provision people need for an adequate standard of living in retirement and the pension amount they can currently expect to receive.
The key findings are:
1) Across the EU, the annual pensions gap is €1.9 trillion, or 19% of 2010 GDP. No single policy change can close the gap entirely on its own.
2) At an individual level, some people will need to increase savings by an average of €12,000 per year to fully close their personal pensions gap.
3) Non-pension assets, such as property, are only expected to
A preliminary assessment of the financial feasibility of basic income emily...Emily Van de Walle
The financial feasibility of unconditionally granting every citizen an equal fixed monthly income, known as basic income, is taken into scrutiny in this dissertation. This is achieved by a static cost estimation of a wide variety of basic income proposals as well as an assessment of the cost savings on the social security system that may be achieved through the introduction of basic income.
As per recommendation by my promoter, prof. dr. Erreygers, I am currently working on an article that is based on the findings of my master's thesis with the objective of having the article published in an economic scientific journal.
This document provides an overview of the social protection system in France. It discusses the origins of the modern social security system in France dating back to the late 19th century. It describes how the current system was established after World War II, combining elements of the Bismarck and Beveridge models. The social protection system in France is comprised of four main branches - illness, old age/retirement, family, and work accident/occupational disease. It is financed through social contributions and assigned taxes, and provides allowances and benefits to citizens to protect them against various social risks.
This document provides an overview of the European Social Fund (ESF) and compares it to the American Workforce Investment Act (WIA). It summarizes that the ESF provides €75 billion in funding to EU member states for projects related to employment and social inclusion. It also outlines the six priority areas that ESF funding supports. The document then introduces WIA as the American policy that provides employment services and compares some of its structures and goals to the ESF, such as targeting specific demographic groups and a focus on employment and human capital outcomes. It notes both similarities and differences between the two policies.
The document discusses unemployment benefits in the UK and considers replacing the current National Insurance system with mandatory private unemployment insurance.
Under the current system, the government provides unemployment insurance benefits through National Insurance contributions to help the unemployed maintain living standards. However, generous benefits could discourage seeking work. Private insurance could lower taxes but may not prevent drops in consumption for some and could fail like private health insurance due to issues like discrimination, information asymmetry, and moral hazard. Replacing public benefits with private insurance could recreate problems like disincentives to work and deny coverage to vulnerable groups.
In recent years, population ageing has attracted the attention of research and policy advisors in all European countries. Several policy actions have been directed toward ensuring optimal long-term care (LTC) for elderly people while maintaining fiscal rationality. LTC systems are very different across all European countries. Their design is characterized by diverse arrangements for the provision of care/organization and financing. Despite general concerns, the Polish LTC system is still at the bottom of the pile in terms of the organization and provision of care.
Authored by: Izabela Styczynska
No Longer a Purely Political Question: Challenging the Austerity Approach Thr...Gabriel Armas-Cardona
Reviewing the austerity crisis in Europe, the lack of human rights discourse, and how to promote economic, social and cultural rights in a similar context. Presentation given on April 8, 2016.
Jan-Kees Helderman on NHS reform - a Dutch perspective The King's Fund
Jan-Kees Helderman, assistant professor in Comparative Governance and Public Policy at Radbouyd University Nijmegan, outlines how the Dutch health care system operates and reflects on the English health reforms.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
This document discusses the concepts of adequacy and sustainability of pension systems from the perspective of the International Labour Organization (ILO). It addresses how societies define adequate pensions, balancing adequacy with sustainability lessons from reforms in Europe, and how to close global coverage gaps. Key points include: adequacy is defined nationally based on social contracts; European reforms have focused on sustainability but reduced future benefit levels; non-contributory pensions are important to protect those with broken careers and lower incomes from poverty; and expanding non-contributory pensions is critical to closing global coverage gaps and providing basic income security to the growing elderly population in developing regions.
20140710 etuc ewl letter on threats to withdraw the maternity leave dire...Lili Brouwer
The European Trade Union Confederation and European Women's Lobby are urging the European Parliament to oppose the European Commission's consideration of withdrawing its proposal to strengthen the Maternity Leave Directive. The proposal aims to ensure full pay during maternity leave and protection against discrimination for pregnant workers and new mothers. Withdrawing the proposal would undermine the EU's commitment to gender equality and women's economic participation. The organizations argue that stronger maternity protections are critical for achieving gender equality, reducing the gender pay gap and women's economic disadvantages, eliminating child poverty, and improving public health.
Ageing: Fiscal implications and policy responses -- Christian Lorenz, GermanyOECD Governance
The document discusses Germany's long-term care (LTC) system and a newly created LTC precaution fund. Key points:
- Germany has a separate social LTC insurance pillar funded by contributions that is managed similarly to but independently from its health care system.
- LTC expenditures are expected to double or triple as a percentage of GDP by 2060 due to demographic aging, making reforms necessary.
- The new LTC precaution fund will stabilize LTC premiums starting in 2035 by collecting contributions now and investing them to be drawn upon when more funding is needed to cope with the aging population.
Presentation delivered by Dr Awad Mataria, Regional Adviser, Health Systems Development at the 62nd Session of the WHO Regional Committee for the Eastern Mediterranean
This document provides an introduction and background to a study comparing the healthcare systems of Romania and Poland. It begins by discussing the motivation for the study from a documentary about healthcare issues facing Roma women in Romania. It then provides context about the countries' transition from communist rule and healthcare models. The author hypothesizes that Romania's healthcare system is less effective than Poland's due to inability to transition to a market economy and more corrupt institutions. The methodology will use a most-similar systems design to compare variables like GDP spent on healthcare and institutional effectiveness between the two countries.
The social security system in Turkey draws on both the Bismarck and Mediterranean models. It is predominantly similar to the Bismarck model where premiums paid on wages are collected in a joint pool to provide benefits based on paid premiums for retirement, accidents, and sickness. However, it also shares elements with the Mediterranean model such as a large informal economy and families providing support. Recent reforms have aimed to unify standards and ensure sustainability while maintaining these influences. The system includes both compulsory and voluntary social insurance programs managed through the Social Security Institution and various insurance companies.
Ageing: Fiscal implications and policy responses -- Mirko Lichetta, United Ki...OECD Governance
This presentation was made by Mirko Lichetta, United Kingdom, at the 6th Meeting of the Joint OECD DELSA-GOV Network on Fiscal Sustainability of Health Systems, held at the OECD Conference Centre, Paris, on 18-19 September 2017
Presentation by Herwig Immervoll, Expert, OECD on the occasion of the EESC hearing on European minimum income and poverty indicators (Brussels, 28 May 2013)
- IORP II is an EU directive that updates pension regulation and aims to improve governance, risk management, and transparency for occupational pension funds.
- It creates both challenges and opportunities for pension funds as they must comply with new requirements regarding functions like risk management and auditing.
- While IORP II seeks to facilitate cross-border consolidation of pension schemes, this may be limited in practice due to barriers like different implementation in each member state.
Unemployment Insurance in Canada: proposals for reformMichel Rochette
A older public Policy research report on reforms to the Canadian Unemployment program as it used to be called/
Un rapport de recherche concernant un projet de réforme au programme d'assurance-chômage au Canada.
The care market in Barnet is dominated by residential care homes due to a high number of self-funding retirees. However, self-funders may not have good access to advice about care options. Most care is received through informal arrangements, but demand is expected to rise as more families provide care. Long-term carers are at risk for health problems. The UK government launched a national carers strategy in 2008 to improve support, but gaps remain like respite care. There is a need for more accessible housing with support to help those with complex needs.
The document discusses social assistance in Belgium within a European context. It provides an overview of the development of minimum income policies across Europe, focusing on increasing importance of social assistance coupled with activation measures. It then examines the key features of Belgium's droit à l’integration sociale (DIS) law, including its emphasis on individualized insertion projects and equal rights for foreigners. Some criticisms are noted, such as lack of resources to fully implement insertion projects and questions around definitions of concepts like "suitable" jobs.
The truth about the deficit of the public accounts of brazil and the reform o...Fernando Alcoforado
The Social Security reform proposed by the Bolsonaro government will not solve Brazil's public deficit issues and will harm citizens. The real causes of the deficit are the country's economic recession from 2014-2018, which reduced tax revenue, and the huge costs of paying interest on the public debt. The reform prioritizes private banks over citizens by transitioning to a private capitalization system that most Brazilians cannot afford and will leave many without retirement support. It is a false solution that does not address the underlying economic problems and will increase inequality if approved.
1) Expanding pension coverage is challenging as traditional social insurance models have stagnated. Emerging responses include social pensions, matching contribution programs, and subsidized health insurance for the poor.
2) Designing programs for informal sector workers requires addressing their variable incomes, low savings, and liquidity preferences. Programs minimize costs and maximize incentives through features like small contributions and default investments.
3) A combination of social pensions set at the poverty level and means-tested matching contribution programs indexed to income can work together to expand coverage in the short and long-term.
The document discusses CONCORD's position on EU budget support. It provides an overview of the EU's use of budget support as an aid modality. While CONCORD welcomes some aspects of the EU's approach, it raises concerns about lack of oversight and citizen involvement. The document concludes with recommendations for how the EU can improve budget support to increase its impact on poverty reduction, including through greater transparency, accountability, and inclusion of civil society.
The document discusses the challenges facing Ireland's goal of introducing universal health insurance by 2016. It will be an immense undertaking requiring extensive economic, legal and administrative changes across the entire healthcare system. Many crucial details about benefits, costs, and rules still need clarification for patients, providers and insurers. Creating such vast reforms to a functioning healthcare system within just six years will be an ambitious challenge.
-Key sources of risk in the pay-out phase and retirement products
-Pay-out options and risk trade-offs
-Lump sum payments
-Programmed withdrawals
-Life annuities
-Reverse mortgage as a retirement financing instrument
-The role of public policy interventions
Jan-Kees Helderman on NHS reform - a Dutch perspective The King's Fund
Jan-Kees Helderman, assistant professor in Comparative Governance and Public Policy at Radbouyd University Nijmegan, outlines how the Dutch health care system operates and reflects on the English health reforms.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
This document discusses the concepts of adequacy and sustainability of pension systems from the perspective of the International Labour Organization (ILO). It addresses how societies define adequate pensions, balancing adequacy with sustainability lessons from reforms in Europe, and how to close global coverage gaps. Key points include: adequacy is defined nationally based on social contracts; European reforms have focused on sustainability but reduced future benefit levels; non-contributory pensions are important to protect those with broken careers and lower incomes from poverty; and expanding non-contributory pensions is critical to closing global coverage gaps and providing basic income security to the growing elderly population in developing regions.
20140710 etuc ewl letter on threats to withdraw the maternity leave dire...Lili Brouwer
The European Trade Union Confederation and European Women's Lobby are urging the European Parliament to oppose the European Commission's consideration of withdrawing its proposal to strengthen the Maternity Leave Directive. The proposal aims to ensure full pay during maternity leave and protection against discrimination for pregnant workers and new mothers. Withdrawing the proposal would undermine the EU's commitment to gender equality and women's economic participation. The organizations argue that stronger maternity protections are critical for achieving gender equality, reducing the gender pay gap and women's economic disadvantages, eliminating child poverty, and improving public health.
Ageing: Fiscal implications and policy responses -- Christian Lorenz, GermanyOECD Governance
The document discusses Germany's long-term care (LTC) system and a newly created LTC precaution fund. Key points:
- Germany has a separate social LTC insurance pillar funded by contributions that is managed similarly to but independently from its health care system.
- LTC expenditures are expected to double or triple as a percentage of GDP by 2060 due to demographic aging, making reforms necessary.
- The new LTC precaution fund will stabilize LTC premiums starting in 2035 by collecting contributions now and investing them to be drawn upon when more funding is needed to cope with the aging population.
Presentation delivered by Dr Awad Mataria, Regional Adviser, Health Systems Development at the 62nd Session of the WHO Regional Committee for the Eastern Mediterranean
This document provides an introduction and background to a study comparing the healthcare systems of Romania and Poland. It begins by discussing the motivation for the study from a documentary about healthcare issues facing Roma women in Romania. It then provides context about the countries' transition from communist rule and healthcare models. The author hypothesizes that Romania's healthcare system is less effective than Poland's due to inability to transition to a market economy and more corrupt institutions. The methodology will use a most-similar systems design to compare variables like GDP spent on healthcare and institutional effectiveness between the two countries.
The social security system in Turkey draws on both the Bismarck and Mediterranean models. It is predominantly similar to the Bismarck model where premiums paid on wages are collected in a joint pool to provide benefits based on paid premiums for retirement, accidents, and sickness. However, it also shares elements with the Mediterranean model such as a large informal economy and families providing support. Recent reforms have aimed to unify standards and ensure sustainability while maintaining these influences. The system includes both compulsory and voluntary social insurance programs managed through the Social Security Institution and various insurance companies.
Ageing: Fiscal implications and policy responses -- Mirko Lichetta, United Ki...OECD Governance
This presentation was made by Mirko Lichetta, United Kingdom, at the 6th Meeting of the Joint OECD DELSA-GOV Network on Fiscal Sustainability of Health Systems, held at the OECD Conference Centre, Paris, on 18-19 September 2017
Presentation by Herwig Immervoll, Expert, OECD on the occasion of the EESC hearing on European minimum income and poverty indicators (Brussels, 28 May 2013)
- IORP II is an EU directive that updates pension regulation and aims to improve governance, risk management, and transparency for occupational pension funds.
- It creates both challenges and opportunities for pension funds as they must comply with new requirements regarding functions like risk management and auditing.
- While IORP II seeks to facilitate cross-border consolidation of pension schemes, this may be limited in practice due to barriers like different implementation in each member state.
Unemployment Insurance in Canada: proposals for reformMichel Rochette
A older public Policy research report on reforms to the Canadian Unemployment program as it used to be called/
Un rapport de recherche concernant un projet de réforme au programme d'assurance-chômage au Canada.
The care market in Barnet is dominated by residential care homes due to a high number of self-funding retirees. However, self-funders may not have good access to advice about care options. Most care is received through informal arrangements, but demand is expected to rise as more families provide care. Long-term carers are at risk for health problems. The UK government launched a national carers strategy in 2008 to improve support, but gaps remain like respite care. There is a need for more accessible housing with support to help those with complex needs.
The document discusses social assistance in Belgium within a European context. It provides an overview of the development of minimum income policies across Europe, focusing on increasing importance of social assistance coupled with activation measures. It then examines the key features of Belgium's droit à l’integration sociale (DIS) law, including its emphasis on individualized insertion projects and equal rights for foreigners. Some criticisms are noted, such as lack of resources to fully implement insertion projects and questions around definitions of concepts like "suitable" jobs.
The truth about the deficit of the public accounts of brazil and the reform o...Fernando Alcoforado
The Social Security reform proposed by the Bolsonaro government will not solve Brazil's public deficit issues and will harm citizens. The real causes of the deficit are the country's economic recession from 2014-2018, which reduced tax revenue, and the huge costs of paying interest on the public debt. The reform prioritizes private banks over citizens by transitioning to a private capitalization system that most Brazilians cannot afford and will leave many without retirement support. It is a false solution that does not address the underlying economic problems and will increase inequality if approved.
1) Expanding pension coverage is challenging as traditional social insurance models have stagnated. Emerging responses include social pensions, matching contribution programs, and subsidized health insurance for the poor.
2) Designing programs for informal sector workers requires addressing their variable incomes, low savings, and liquidity preferences. Programs minimize costs and maximize incentives through features like small contributions and default investments.
3) A combination of social pensions set at the poverty level and means-tested matching contribution programs indexed to income can work together to expand coverage in the short and long-term.
The document discusses CONCORD's position on EU budget support. It provides an overview of the EU's use of budget support as an aid modality. While CONCORD welcomes some aspects of the EU's approach, it raises concerns about lack of oversight and citizen involvement. The document concludes with recommendations for how the EU can improve budget support to increase its impact on poverty reduction, including through greater transparency, accountability, and inclusion of civil society.
The document discusses the challenges facing Ireland's goal of introducing universal health insurance by 2016. It will be an immense undertaking requiring extensive economic, legal and administrative changes across the entire healthcare system. Many crucial details about benefits, costs, and rules still need clarification for patients, providers and insurers. Creating such vast reforms to a functioning healthcare system within just six years will be an ambitious challenge.
-Key sources of risk in the pay-out phase and retirement products
-Pay-out options and risk trade-offs
-Lump sum payments
-Programmed withdrawals
-Life annuities
-Reverse mortgage as a retirement financing instrument
-The role of public policy interventions
- The document discusses welfare reform and the role of income protection insurance. It notes that the current welfare system assumes households will take responsibility for their own financial safety nets, but many do not.
- Around 1 million workers become unable to work each year due to illness or injury. Income protection insurance, provided through employers, can help replace lost income and support households, businesses, and the economy.
- Alternative models combining state support and private insurance need to be explored to make household income safety nets clear and meet diverse needs, while reducing welfare costs. Income protection insurance should be part of the solution.
This document discusses changing perspectives on social security systems. It argues that social security is a fundamental human right recognized globally and provides important societal benefits like reducing poverty and inequality. However, social security systems have come under pressure in recent decades from economic stresses and a paradigm viewing social welfare as a trade-off for economic growth. The document advocates optimizing national social security systems within a framework of decent work and contests the view of an inevitable trade-off between social welfare and economic growth.
Nhi and medical schemes amendment bill announcement minister's speechSABC News
Dr. Aaron Motsoaledi, the Minister of Health, held a press conference to discuss two bills - the Medical Schemes Amendment Bill and the National Health Insurance (NHI) Bill. He first discussed amendments to the Medical Schemes Act, including abolishing co-payments, brokers, and replacing prescribed minimum benefits with comprehensive services. He then briefly introduced the NHI Bill, and took questions on both bills. The amendments aim to provide relief to patients struggling with costs and align the current system with the future NHI system.
This document discusses primary health care financing reforms in Cameroon. It notes that Cameroon currently relies heavily on out-of-pocket payments for health care, which has led to high rates of catastrophic health expenditures and barriers to access. The document reviews Cameroon's socioeconomic context and history of health policies. It proposes developing a more sustainable financing method to improve access and reduce financial barriers. A literature review defines key concepts in health policy, financing, equity, efficiency, and expenditures to provide context for analyzing alternatives.
This document summarizes a working paper that analyzes demographic policy responses to population aging and decline in developed countries. It discusses three policy areas: promoting fertility through family policies like parental leave and child benefits, increasing retirement ages and labor market policies to encourage longer working lives, and managing immigration. The paper finds that cash transfers and childcare support can modestly increase fertility rates. It also argues that retirement and labor policies need to keep older workers healthy, skilled and motivated to work longer. Immigration policies face political and economic challenges in offsetting population aging. The paper evaluates tradeoffs between these policy options in terms of their impact on extending retirement years.
This document discusses financing primary health care in Cameroon. It notes that currently, household health financing is mostly done through out-of-pocket payments, which can lead to catastrophic health expenditures and push households into poverty. While Cameroon has social health insurance and community-based insurance programs, coverage remains low, with 62% of Cameroonians lacking access to quality healthcare. The document proposes studying alternative sustainable financing methods to improve access and reduce financial barriers to healthcare.
Taroni Health care policy and politics in Italy in hard timesCarlo Favaretti
This editorial discusses the impact of the financial crisis on Italy's health care system. It argues that unlike previous economic crises, the current crisis has produced significant long-term political and institutional changes. While there has been no direct assault on Italy's universal health care system (SSN), unprecedented budget cuts totaling over 3 billion euros between 2010-2013 have fallen disproportionately on health care. These cuts are reducing social rights and benefits through higher copays, pay freezes, and a shift to more private care. The crisis has also increased the influence of the European Union over domestic policy, weakening unions and regional governments who traditionally supported the SSN. Overall, the editorial argues the financial crisis is gradually transforming Italy's health system
Social Health Insurance vs. Tax-Financed Health Systems—Evidence from the OECDEyesWideOpen2008
A WHO study that proves that Social Health Insurance healthcare systems DO NOT WORK.
It increases costs, have no positive effect on national health, and even has negative effects on employment and some areas of health.
This document discusses the financial impact of longevity risk, which is the risk that people may live longer than expected. Three key points:
1) Longevity risk poses very large financial implications for governments, pension plans, insurers and individuals as people live longer than expected. An increase in lifespans by just 3 years could increase the costs of aging by 50%.
2) Unexpected longevity beyond forecasts is a financial risk, as governments, pension plans will have to pay out more benefits. Individuals also face the risk of outliving their retirement resources.
3) Addressing longevity risk requires acknowledging it, sharing the risk among individuals, pension plans and governments, developing markets to transfer longevity risk, and allowing
The document summarizes the findings and recommendations of the Commission on the Future of Health and Social Care in England. It identifies three key problems with the current system: it is unfair, funding is separate between health and social care, and services are not well coordinated. The Commission recommends a new system that 1) commissions health and social care together, 2) simplifies access and increases personal control, and 3) increases free social care provision over time. However, these changes would require more funding. The Commission believes the costs can be covered through tax increases focused on those who can afford to pay more, and that the reformed system would be more efficient and achieve better outcomes.
This document discusses pension reform in Ukraine. It outlines the goals of reforming Ukraine's pension system to make it more sustainable and ensure pensioners a decent standard of living. The current system faces problems like low average pensions, a growing budget deficit, and incompatibility with Ukraine's current economic realities. The government and opposition generally agree on the need for reform but differ on some policy details. Proposed reforms include raising the retirement age, reducing early retirement benefits, shifting contributions from employers to employees, and establishing a three-pillar system including state PAYGO, state accumulative, and private accumulative components. Civil society plays an important role in the debate around pension reform.
09/09/2019 - This booklet presents the main messages from the OECD review of pensions systems in Peru. The review assesses Peru’s pension system in its entirety, looking at both public and private, pay-as-you-go (PAYG) financed and funded pension provisions. http://www.oecd.org/pensions/oecd-review-pension-systems-peru.htm
The document outlines China's 2009-2011 plan to reform its healthcare system with 5 priorities: 1) Accelerate establishing a basic medical security system to cover all urban and rural residents. 2) Preliminarily set up a national essential medicines system. 3) Improve grassroots healthcare services. 4) Gradually equalize basic public health services. 5) Advance pilot projects to reform public hospitals. The plan aims to address issues of high medical costs and unequal access to care. Key reforms include expanding insurance coverage, increasing funding and benefits, and regulating administration of medical security funds.
Journal of Economic Perspectives—Volume 19, Number 2—Spring 20.docxtawnyataylor528
Journal of Economic Perspectives—Volume 19, Number 2—Spring 2005—Pages 11–32
Saving Social Security
Peter A. Diamond and Peter R. Orszag
F or almost 70 years, Social Security has provided retirees with a basic level ofincome that is protected against inflation, financial market fluctuations andthe risk of outliving one’s assets. It protects against other risks as well, such
as disability or the death of a family wage earner. In addition, through its progres-
sive structure, Social Security provides some protection against one’s career not
turning out well. Social Security plays a critical role in providing financial security
during retirement: It provides the majority of income for two-thirds of elderly
beneficiaries, and all income for 20 percent of elderly beneficiaries.
Over the next 75 years, Social Security costs are projected to rise by about
2.5 percent of Gross Domestic Product (GDP), while revenues are projected to
decline slightly as a share of GDP. Social Security’s long-term financial health can
be restored through either minor adjustments or major surgery. In our view, major
surgery is neither warranted nor desirable—sustainable solvency and improved
social insurance can be accomplished by a progressive reform that combines
modest benefit reductions and revenue increases (as presented in more detail in
Diamond and Orszag, 2004).
We begin by describing some benefit improvements for vulnerable groups for
which there appears to be wide support, including from the President’s Commis-
sion to Strengthen Social Security (2001) appointed by President Bush. We then
discuss our proposed benefit and tax changes to close the underlying Social
Security deficit and finance these important social insurance improvements. We
also examine plans that replace part of Social Security with individual accounts,
explaining why, in our view, such a course would not represent sound policy.
y Peter A. Diamond is Institute Professor, Massachusetts Institute of Technology, Cambridge,
Massachusetts. Peter R. Orszag is the Joseph A. Pechman Senior Fellow in Economic Studies,
The Brookings Institution, Washington, D.C.
12 Journal of Economic Perspectives
Improving Social Insurance
We begin by focusing on a small number of particularly vulnerable beneficiary
types, following the lead of President Bush’s Commission to Strengthen Social
Security (2001) and others.1
First, workers with low lifetime earnings often live in poverty during retirement
despite Social Security’s progressive benefit formula. In 1993, taking into account
all sources of income, 9 percent of retired worker beneficiaries lived in poverty. Of
these poor retired worker beneficiaries, 10 percent had worked for 41 or more
years in employment covered by Social Security, and more than 40 percent had
worked between 20 and 40 years. In other words, many workers who have had
substantial connections to the work force throughout their careers nonetheless face
poverty in retirement. Our plan ...
L'articolo a colonna sul lato destro, con titolo evidenziato in verde, riporta alcuni commenti degli esperti. Tra questi, anche il mio (Nicola Salerno, CeRM), riguardante il contributo applicabile alle pensioni per riassorbire, almeno in parte, i generosi vantaggi elargiti dalle regole di calcolo retributive.
Vi racconto perchè ho votato FARE-FiD alla Camera e M5S al Sento.
Me lo chiedono in tanti.
A tutti rispondo con queste poche righe, mano alla coscienza.
Non è stato un voto facile.
Che viva l'Italia! nicola
Tra il Gennaio 2001 e il Settembre 2012, sono poste a confronto le seguenti tre serie:
1) Commercio al dettaglio a valori nominali;
2)Prezzi al consumo (indice armonizzato Europa, HICP);
3) Commercio al dettaglio in termini reali (depurato dalla dinamica dei prezzi).
Ne emerge una forbice impressionante, con in mezzo le famiglie.
Le serie sono quelle Istat destagionalizzate. Valori del Gennaio 2011 normalizzati all\'unita\'.
::: IL VIAGGIO ::: Una versione moderna dell\'ippogrifo. Un po\' vascello un po\' lampara, un po\' macchina fuoristrada un po\' pullman a più piani, un po\' casa semovente un po\' Carro della Bruna. Ce n\'è per tutti i gusti. Sembra lì lì per collassare su di sè, ma poi dura finchè va. Più o meno è così la mia valigia quando parto. Un grazie all\'immaginazione e alla mano di Paolo Freuli.
1) Long term projections show healthcare spending as a percentage of GDP could double or more than double by 2060 in industrialized countries due to new drugs and technology.
2) In Italy, governance of spending on cancer drugs remains incomplete, with regulation fragmented between the national, regional, and hospital levels.
3) This leads to unequal access to drugs for citizens depending on where they live, and differences in how therapies are monitored and costs managed between regions and hospitals.
Ipotesi di riduzione dei contributi pensionistici al primo pilastro. Una prim...Nicola_C_Salerno
La prima quantificazione di una ipotesi di riduzione dei contributi pensionistici obbligatori per gli under 40 lavoratori dipendenti regolari (pubblici e privati, full time e part time).
Le elaborazioni sono descritte passo passo.
CeRM, Settembre 2012
Ipotesi di riduzione dei contributi pensionistici al primo pilastro. Una prim...
CeRM proposal for Welfare Funds
1. ::: CERM POSITION PAPER :::
The Multipillar System for Health Care Financing:
Thirteen Good Reasons for Open Capitalisation Funds,
Covering both Pension and Health Care Provisions
CeRM recommendation for creating a new tool, the Open Welfare Funds:
open funds based on real capitalisation of contributions, dedicated to both pension
and health care provisions, and linked to collective insurance coverage against
major health risks (first of all lack of self-sufficiency)
F. Pammolli, N. C. Salerno (CeRM, Rome)
F. Pammolli, N. C. Salerno
CeRM, Rome - cermlab@cermlab.it | www.cermlab.it
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2. ::: CERM POSITION PAPER :::
Abstract
Within welfare systems, health care is the expenditure that poses the most urgent problems for
long term sustainability. Without policy interventions and structural reforms, its physiological
tendency towards increases over Gdp will inevitably require access restrictions and cutting off
of demand for services.
This paper highlights the need to renew the current health care financing scheme. In the
presence of ageing populations and rising incidences of health care expenditures over Gdp, this
scheme cannot remain fully in charge of the working income of active people (pay-as-you-go), if
we want to avoid depressive effects on employment, investments and productivity. Such effects,
besides hampering economic growth, would have a negative impact on health care itself, with
resources becoming more and more scarce with respect to needs.
The financing scheme must become multipillar, with pay-as-you-go complemented by a private
channel based on the real capitalisation of contributions. This channel would be capable of
allocating savings, supporting productive investments and generating resources to be dedicated
to health care.
The best structuring and concrete functioning of the private pillar is less clear and under
discussion. This position paper puts forward an operational proposal: the open capitalisation
fund for welfare should offer both pension and health care provisions through real accumulation
of contributions on individual accounts, and should be linked to collective insurance coverage
against major risks and lack of self-sufficiency.
This tool presents numerous positive characteristics, compared to the public pay-as-you-go
monopillar as well as to a multipillar system in which the private component consists
exclusively or mainly of insurance contracts. In fact, it is necessary to restrict the recourse to
pure insurance coverage only to a limited group of treatments, because this kind of coverage is
not equipped to deal with the dynamics of future expenses. As the difficulties American
insurance companies are experiencing demonstrate, the pure insurance coverage ends up with
the recurrence, in the private area, of the same defects as the pay-as-you-go in the public health
care systems. Insurance pooling is not but a pay-as-you-go scheme applied over the group of
insured members.
An open and conclusive debate is necessary.
F. Pammolli, N. C. Salerno
CeRM, Rome - cermlab@cermlab.it | www.cermlab.it
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3. ::: CERM POSITION PAPER :::
The Italian population will age faster than many other European population. In 2007 the
dependency ratio (the ratio between non versus working age people is 51.5 percent, against
48.6 in the Eu-25 and 49 in the Eu-15. This gap will likely increase. In 2050 the ratio will be
86.8 percent, against 77.1 in the Eu-15 according to the Eurostat central demographic scenario,
and 94.3 percent against 83.1 in the Eu-15 according to the most intense aging scenario. This
profound reshaping of the demographic pyramid will not only cause changes in the economic
sector and in the society, but will also induce disproportionate flows of resources between
generations will emerge, particularly in terms of financing of pension and health care systems.
1. Inadequacy of the Monopillar Paygo System
In Italy, pensions and health care are financed almost entirely on a pay-as-you-go basis, that
means through resources taken yearly from the incomes of workers.
Considering the long term projections for pension expenditure (Ecofin) and health care (Oecd),
together with Eurostat demographic projections, in 2050 every working age citizen will have to
contribute an amount equal to 50 percent of per capita Gdp (today it is 30).
Even in the optimistic hypothesis of achieving the labour market goals set at the Lisbon and
Stockholm European Councils, the burden on every employed person would exceed 70 percent
of per capita Gdp. If instead the employment rates were to remain as they are today, this burden
would be much heavier, close to 100 percent, because for every employed person there would
be 1.5 persons (children and the elderly) to be supported (today 0.85).
These huge disproportions will take place, to different extents, in all industrialized countries,
and are bound to produce distorting effects on labour markets, investments and production.
Pay-as-you go financing schemes can no longer rely any more on the so-called Aaron’s
theorem, which, given a young and growing population, states that yearly contributions paid by
all working people were the best possible solution for both transferring resources across
generations (pensions) and sustaining universalistic provisions (health care systems).
2. Development of the Complementary Capitalisation Pillar
In order to rebalance the pay-as-you-go scheme, for both pensions and health care, it is
necessary to develop a complementary pillar based on real capitalisation, that provides
resources for facing future expenditures through the accumulation, supported by tax relief, of
long term investments on individual accounts.
In Italy, the debate on the limits of pay-as-you-go schemes has focused almost exclusively on
pensions. For these, even though the private pillar still displays an insufficient dimension and its
normative framework is far from complete, a certain awareness of the problem has been
reached. On the contrary, for health care the road to a solution still appears long, despite the
fact that the multipillar diversification appears more necessary than for pensions.
In Italy, while public pension expenditure is slowly stabilising over Gdp, public health care
expenditure, without policy correction, could potentially double or more than double its
incidence (from approximately 6.8 percent of Gdp to 15-16 in 2050). In the mid-long term, the
dynamics of the two items will create two different problems: for pensions a problem of social
F. Pammolli, N. C. Salerno
CeRM, Rome - cermlab@cermlab.it | www.cermlab.it
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4. ::: CERM POSITION PAPER :::
sustainability, if the employment rates fail to close the gaps with respect to the Eu Partners,
working life will not be lengthened and the private pillar will not manage to integrate
sufficiently; while for health care a real and true financial problem, that is unbearable pressure
on the public budget.
The development of the private pillar would also bring positive effects in terms of incentives to
work, productivity, and the lengthening of active life, from the moment that, boosted by tax
relief, the single adherent’s savings would accumulate to his advantage only, with his rights to
the fruits thereof guaranteed. From this point of view, the private pillar in health care would
reinforce the virtuous properties of the rules of notional capitalisation calculation introduced by
the “Dini” pensions reform of 1995.
3. A Proposal: Open Capitalisation Funds for Welfare
In order to promote the development of a financing channel based on real accumulation, it
would be useful to reflect on the possibility of a convergence of the two complementary
coverage: the pension one and that for health care, for both acute and long term care
provisions.
This is a subject that concerns primarily the funds rather than insurance plans, because the
formers have, through simplification, standardisation and critical mass, higher potentialities of
lowering administrative and managing costs.
By combining pension and health care aims, it would be possible to borrow the actual pension
funds structure directly, for then completing and perfecting it. More specifically, the three goals
- pensions, acute health care and long term care - could refer to the same legal subject,
identifiable as <open capitalisation welfare fund>, operating through the real accumulation of
contributions on members’ individual accounts, and linked to collective insurance coverage
against major health risks and lack of self-sufficiency.
Incidentally, the current Italian legislation already allows pension funds to pursue aims of a
health/socio-health nature by disinvesting a predefined percentage of accumulated capital, or by
using a percentage of member’s contributions to buy an insurance coverage against major
critical events, and in particular the lack of self-sufficiency.
4. The Possible Advantages of Open Capitalisation Funds for
Welfare
Several advantages can be derived from the introduction of open capitalisation welfare funds:
1. Homogenization of tax treatment would produce transparency and
effectiveness for fiscal incentives, which today are different for pension and
health care funds. It would be possible to concentrate on the tax detraction
scheme that, as the Oecd suggests, is capable of attracting wider groups of
workers, while favouring a better control of tax expenditure;
F. Pammolli, N. C. Salerno
CeRM, Rome - cermlab@cermlab.it | www.cermlab.it
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5. ::: CERM POSITION PAPER :::
2. Today, both health and pension funds compete for the same financial
resources: the contributions of employees and of sponsor companies, the
contributions from members independently of their work situation, and the
severance pay. Open welfare funds would channel these resources into a single
accumulation programme;
3. The open welfare fund would open up possibilities for lowering administration
and managing costs, and above all it would make integrated management of
financial flows possible, both capable of making the most of the benefits of the
capitalisation over mid-long term periods, and of carrying out a broad
diversification of risks;
4. With regard to the supply of services, the performance of the various functions
could be guaranteed in conditions of greater flexibility, efficiency and
effectiveness:
4.1 Parts of the resources accumulated within the fund could be disinvested in
the course of a member’s working life, within limits and for specific
purposes, to enable meeting personal and family health care expenses. In
particular, a given amount could be dedicated, year by year, to finance
copayments for the access to health care services provided by the public
health care system. Resources to finance copayments would be deducted
from the accumulation on member’s individual account, meaning that
copayment schemes would not lose their positive properties of demand
and supply regulation (see following point 4.8)1;
4.2 For acute health treatments which involve high costs (either because they
are not provided by the public sector or because accompanied by high
copayments), as well as for socio-health cares (first of all, the lack of self-
sufficiency), it would be possible to buy, as a particular asset of the fund, a
collective insurance coverage for all members, paying premiums by
disinvesting, year by year, a part of the capital accumulated in the
individual accounts2. It is necessary to apply pure insurance coverage only
to a limited group of treatments, because this kind of coverage is not
equipped to deal with the dynamics of future expenses. As the difficulties
American insurance companies are experiencing demonstrate, the pure
insurance coverage ends up with the recurrence, in the private area, of the
same defects as the pay-as-you-go in the public health care systems.
Insurance pooling is not but a pay-as-you-go scheme applied over the
group of insured members;
4.3 Using a portion of the capital accumulated at the moment of retirement,
the fund may buy a collective insurance coverage against the risk of lack
of self-sufficiency for the whole period of the members’ retirement;
1
This point is of great importance in the light of the moving from the absolute toward the selective universalism.
2
Minor health care expenses can be directly financed using resources withdrawn from the accumulation. For bigger
expenses (such as for lack of self-sufficiency), it is essential to maintain a pure insurance coverage, so as not to over
weaken the accumulation program. This is the rationale for the link between the open fund, based on the accumulation
of individual contributions on individual accounts, and the acquisition of collective insurances as part of the assets of
the fund.
F. Pammolli, N. C. Salerno
CeRM, Rome - cermlab@cermlab.it | www.cermlab.it
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6. ::: CERM POSITION PAPER :::
4.4 Since one of the aspects considered less satisfactory for pension funds (at
least in current Italian legislation) is the rigidity of the subdivision of
accumulated resources between an annuity and an una tantum capital, it
would be possible to allow a wider access to una tantum to members who,
by adhering to the collective insurance cover against lack of self-
sufficiency, already pursue part of the insurance finality associated with
the constitution of an annuity;
4.5 Collective insurance contracts would have the advantages of lowering
individual negotiation costs for members, and of facilitating risk exposure
management on the part of insurance companies;
4.6 Collective insurance contracts, moreover, would reduce the distortion
caused by adverse selection on the part of members (those most exposed
to adverse events tend more often to nee health treatments), and the
distortion by excess of screaming by insurance companies (coverage is
preferably offered to those less at risk). In some cases, this distortion may
even mean that the company refuses to insure;
4.7 These virtuous effects, described in the two preceding paragraphs, would
be enhanced if the fund, though maintaining voluntary membership, had a
legal obligation to subscribe a collective insurance coverage for the risk of
lack of self-sufficiency of all its members (a sort of condition to obtain tax
benefits). In this case, the risk to incur in an adverse event would be
spread over a much larger group of persons of different ages (all those who
in the meantime are contributing to the complementary pension);
4.8 Finally, with the open fund the member would have a greater sense of
responsibility toward the disinvesting of resources from the fund to finance
the access to health care provisions. In fact, those resources would
continue to accumulate within the individual capitalisation account,
creating future pension benefits. The full appropriability of the resources,
accrued on the personal account, reduces the likelihood of opportunistic
behaviours of moral hazard;
5. The open nature of the fund would not impede the allowance, besides the
individual adhesions, of collective adhesions by whole groups (employees of a
company, workers of a sector, of a territory ...). Together with the complete
portability of individual positions (even in the case of collective adhesion), the
open nature of the funds can work as a constant stimulus for transparency and
cost efficiency;
6. Another advantage can be added to those listed. Within an appropriate
normative and regulatory framework, the open welfare funds would have the
right characteristics for carrying out the function of choosing the best health
care, and channelling the demand of their members towards them, whether
public or private. A mechanism which, supported by detailed and certified
information on funds performance and of the suppliers that the funds choose,
could promote not only cost efficiency, but also quality in services. Moreover
putting public and private suppliers in positive competition could contribute to
reset that border between the political and the health care organisation spheres
in Italy, that is all too often a very grey are often a too grey area.
F. Pammolli, N. C. Salerno
CeRM, Rome - cermlab@cermlab.it | www.cermlab.it
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7. ::: CERM POSITION PAPER :::
5. Conclusions
A new tool, such as the one suggested in this position paper, certainly requires a detailed plan
and also an innovative effort on the part of financial managers and insurance companies.
Nevertheless, the convergence of pension and health funds can open important possibilities for
the reform of the financing structure of the two major items of welfare expenditure. It could
bring about the decisive impulse for the development of a complementary private pillar based
on the real accumulation of contributions on the markets, and integrated with collective
insurance coverage for those health expenditures which, by their very nature, cannot be
financed only by the accumulation of resources in individual accounts, but need to rely solely
on a pure insurance scheme.
Open welfare funds would have the merit of rebalancing the pay-as-you-go scheme on which
most welfare systems today rely. Moreover, through the more suitable combination of tax
incentives and collective insurance coverage for major health expenses, the development of
open welfare funds would not contrast with but, on the contrary, reinforce those principles of
solidarity and cohesion which are at the grounds of welfare systems. And this is especially true
in the presence of ageing populations and rising incidences of health care expenditures over
Gdp.
The proposal for open welfare funds deserves to be closely examined technically, socially and
politically.
F. Pammolli, N. C. Salerno
CeRM, Rome - cermlab@cermlab.it | www.cermlab.it
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