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Cash benefits in long-term home care


  • van den Berg, Bernard
  • Hassink, Wolter H.J.


This paper tests empirically for differences in prices paid between parts of the cash benefit that clients may and not may keep when it is unspent. In The Netherlands, demand-side subsidies were introduced in 1996. Clients receive a cash benefit to purchase the type of home care (housework, personal care, support with mobility, organisational tasks or social support) they need from the care supplier of their choice (private care provider, regular care agency, commercial care agency or paid informal care provider). Furthermore, they negotiate with the care supplier about price and quantity. Our main findings are the following: (1) the component of the cash benefit that a client may not keep when it is unspent has a positive impact on the price of care. (2) In contrast, the components of the cash benefit a client may keep when it is unspent, have no or a negative impact on the price of care. Both results have important implications for designing health policy. If cash benefits are introduced in long-term home care in an attempt to make consumers more conscious about prices, it is only successful when consumers may keep the unspent part of the cash benefit.

Suggested Citation

  • van den Berg, Bernard & Hassink, Wolter H.J., 2008. "Cash benefits in long-term home care," Health Policy, Elsevier, vol. 88(2-3), pages 209-221, December.
  • Handle: RePEc:eee:hepoli:v:88:y:2008:i:2-3:p:209-221

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    References listed on IDEAS

    1. Bernard van den Berg & Han Bleichrodt & Louis Eeckhoudt, 2005. "The economic value of informal care: a study of informal caregivers' and patients' willingness to pay and willingness to accept for informal care," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 363-376.
    2. Barbara Baarsma, 2003. "The Valuation of the IJmeer Nature Reserve using Conjoint Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(3), pages 343-356, July.
    3. Leslie Foster & Randall Brown & Barbara Phillips & Barbara Lepidus Carlson, "undated". "Easing the Burden of Caregiving: The Impact of Consumer Direction of Primary Informal Caregivers in Arkansas (Journal Article)," Mathematica Policy Research Reports ee4e4b20c0cb4dbeb966a105f, Mathematica Policy Research.
    4. repec:mpr:mprres:4666 is not listed on IDEAS
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    Cited by:

    1. Hassink, Wolter H.J. & Van den Berg, Bernard, 2011. "Time-bound opportunity costs of informal care: Consequences for access to professional care, caregiver support, and labour supply estimates," Social Science & Medicine, Elsevier, vol. 73(10), pages 1508-1516.
    2. Schmidt, Jean-Olivier & Ensor, Tim & Hossain, Atia & Khan, Salam, 2010. "Vouchers as demand side financing instruments for health care: A review of the Bangladesh maternal voucher scheme," Health Policy, Elsevier, vol. 96(2), pages 98-107, July.


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