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Can Elderly People Afford Long-Term Care? Financing Long-Term Care in Poland and the Financial Resources Available to Beneficiaries

Author

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  • Anna Konieczna

Abstract

Purpose: This paper aims to assess long-term care (LTC) spending in Poland broken down into public financing and beneficiaries' contributions, which depend on the financial resources available to them. By focusing on individual expense items from the people's perspective requiring care, the author takes stock of the range of care services on offer relative to the financial resources available to those in need. Design/Methodology/Approach: The study examines expenditures on LTC in the West Pomeranian Region of Poland in three social care systems. Out of the list of such expenditures correlated with the financial resources available to the elderly, particular focus is placed on residential LTC services provided in comprehensive care systems. Findings: The levels of expense relative to the average disposable income of pensioners vary widely, revealing the problem of older adults having insufficient financial resources to self-finance their LTC in Poland. The variance results from system design and the principles that govern care financing. The cost of some residential LTC services is charged to beneficiaries, meaning they are required to pay for them out of their pocket, while other services are co-financed at fixed rates that vary depending on the income of the respective beneficiaries. Practical Implications: The paper outlines the essential characteristics of a new LTC financing scheme that could be designed and rolled out in Poland based on research. The main idea is to establish a new dedicated source of care service funding and a new fund-collecting entity. Originality/Value: The proposed method of LTC financing in Poland provides an opportunity to resolve insufficient care funding partially. It is necessary and crucial to identify a new source of funding that would feed into the system, given especially that Polish society is aging rapidly. The discussion covers multiple solutions, some of them taken from the LTC systems of other countries, and reviews viable concepts.

Suggested Citation

  • Anna Konieczna, 2021. "Can Elderly People Afford Long-Term Care? Financing Long-Term Care in Poland and the Financial Resources Available to Beneficiaries," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 1041-1054.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:2b:p:1041-1054
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    References listed on IDEAS

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    1. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    2. Erika Schulz, 2010. "The Long-Term Care System in Germany," Discussion Papers of DIW Berlin 1039, DIW Berlin, German Institute for Economic Research.
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    More about this item

    Keywords

    Long-term care; healthcare management; social care; care benefits; public finance; economy; finance.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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