Details
| Original language | English |
|---|---|
| Pages (from-to) | 378-402 |
| Number of pages | 25 |
| Journal | Jahrbucher fur Nationalokonomie und Statistik |
| Volume | 230 |
| Issue number | 4 |
| Publication status | Published - 2010 |
| Externally published | Yes |
Abstract
In a long-run social experiment, personal budgets have been tested as an alternative home care program of the German long-term care insurance (LTCI). By granting the monetary value of inkind services in cash, personal budgets are considered to enable customized home care arrangements, thereby avoiding costly nursing home care and thus saving LTCI spending. However, personal budgets also compete with the already existing and less generous cash option of the LTCI. Any transition from the receipt of cash benefits to personal budgets thus challenges the view of personal budgets as a cost savings device, unless personal budgets sufficiently reduce the use of costly nursing home care to balance these extra costs. This paper therefore contrasts the short-term costs of implementing personal budgets with potential cost savings if personal budgets enhance the stability of home care and avoid costly nursing home care. For this purpose, the paper investigates the effects of personal budgets on the duration of home care until moving to a nursing home as well as the perceived stability of home care. Despite a positive effect of personal budgets on the stability of home care, LTCI spending is likely to increase in the short to medium run. In the long run, however, the expected transition to decreasing numbers of cash recipients favors the introduction of personal budgets.
Keywords
- Consumer-directed home care, Long-term care, Long-term care insurance, Spending
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- General Business,Management and Accounting
- Social Sciences(all)
- Social Sciences (miscellaneous)
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
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In: Jahrbucher fur Nationalokonomie und Statistik, Vol. 230, No. 4, 2010, p. 378-402.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Are Personal Budgets a Financially Sound Reform Option for the German Long-Term Care Insurance?
AU - Arntz, Melanie
AU - Thomsen, Stephan L.
PY - 2010
Y1 - 2010
N2 - In a long-run social experiment, personal budgets have been tested as an alternative home care program of the German long-term care insurance (LTCI). By granting the monetary value of inkind services in cash, personal budgets are considered to enable customized home care arrangements, thereby avoiding costly nursing home care and thus saving LTCI spending. However, personal budgets also compete with the already existing and less generous cash option of the LTCI. Any transition from the receipt of cash benefits to personal budgets thus challenges the view of personal budgets as a cost savings device, unless personal budgets sufficiently reduce the use of costly nursing home care to balance these extra costs. This paper therefore contrasts the short-term costs of implementing personal budgets with potential cost savings if personal budgets enhance the stability of home care and avoid costly nursing home care. For this purpose, the paper investigates the effects of personal budgets on the duration of home care until moving to a nursing home as well as the perceived stability of home care. Despite a positive effect of personal budgets on the stability of home care, LTCI spending is likely to increase in the short to medium run. In the long run, however, the expected transition to decreasing numbers of cash recipients favors the introduction of personal budgets.
AB - In a long-run social experiment, personal budgets have been tested as an alternative home care program of the German long-term care insurance (LTCI). By granting the monetary value of inkind services in cash, personal budgets are considered to enable customized home care arrangements, thereby avoiding costly nursing home care and thus saving LTCI spending. However, personal budgets also compete with the already existing and less generous cash option of the LTCI. Any transition from the receipt of cash benefits to personal budgets thus challenges the view of personal budgets as a cost savings device, unless personal budgets sufficiently reduce the use of costly nursing home care to balance these extra costs. This paper therefore contrasts the short-term costs of implementing personal budgets with potential cost savings if personal budgets enhance the stability of home care and avoid costly nursing home care. For this purpose, the paper investigates the effects of personal budgets on the duration of home care until moving to a nursing home as well as the perceived stability of home care. Despite a positive effect of personal budgets on the stability of home care, LTCI spending is likely to increase in the short to medium run. In the long run, however, the expected transition to decreasing numbers of cash recipients favors the introduction of personal budgets.
KW - Consumer-directed home care
KW - Long-term care
KW - Long-term care insurance
KW - Spending
UR - http://www.scopus.com/inward/record.url?scp=78349264975&partnerID=8YFLogxK
U2 - 10.1515/jbnst-2010-0402
DO - 10.1515/jbnst-2010-0402
M3 - Article
AN - SCOPUS:78349264975
VL - 230
SP - 378
EP - 402
JO - Jahrbucher fur Nationalokonomie und Statistik
JF - Jahrbucher fur Nationalokonomie und Statistik
SN - 0021-4027
IS - 4
ER -