Financing of Long-term Care

What is long-term care financing?

Long-term care (LTC) financing details the public-private mix of expenditure through which care for older adults with care needs is funded. On the public side, this includes the organisation of public financing (i.e. how the system is financed, often through taxation, social insurance or private insurance), direct subsidies to care providers, as well as LTC benefits afforded to LTC users, determined by the breadth (i.e. eligibility), scope (i.e. what LTC needs are financed), and depth (i.e. what share of costs is publicly financed) of public coverage. On the private expenditure side, this includes out-of-pocket payments required of LTC users, often determined by needs, user’s income and/or assets, or a combination of the two.

Why is financing of long-term care important?

Higher demand for formal LTC services due to demographic ageing and the high cost of LTC services have raised concerns about the financial sustainability and accessibility of LTC. The financing of LTC is thus also closely linked with inequalities in use of care and unmet needs. As most LTC is provided on a voluntary and unpaid basis by families and communities, it is becoming more important to ensure care services and benefits that support informal care.

What we offer:

Researchers at the European Centre are well-versed in analysing the financing of LTC in Europe. We study and assess policies pertaining to LTC financing, with a particular focus on the organisation of financing and the equity implications on LTC users.

Specifically, we:

  • Analyse the distributional impact of different LTC financing models, including out-of-pocket payments and how these are distributed across different population groups and generations.
  • Identify and assess potential measures to improve the adequacy, fairness and fiscal sustainably of LTC financing across Europe.
  • Organise mutual learning events to support the structured exchange of experience and know-how between stakeholders.
  • Analyse the potential incentives for service providers but also informal carers and users of LTC associated with different models and parameters of LTC financing.
  • Offer policy advice on the organisation of LTC financing.

Project examples

Contact persons

Kai Leichsenring

Kai Leichsenring

EXECUTIVE DIRECTOR
Klara Lorenz-Dant

Klara Lorenz-Dant

RESEARCHER
Cassandra Simmons

Cassandra Simmons

RESEARCHER