Labour Care Funding Plans - The Green Paper on Adult Social Care July 2009
On 15th July 2009 in the House of Commons, Andy Burnham, Secretary of State for Health, unveiled the Government’s Green Paper for Adult Social Care and called for a "dignified debate" into the fate of Britain’s elderly.
Three proposals were put forward; the Partnership Service; a Voluntary Insurance Scheme and the Comprehensive Model.
These are our comments on the three proposals:
Partnership
There are merits to this scheme but the proposals state that the Government would fund between a third and a quarter of a person’s care bill. The question, as always is ’but which bill?’
For example; two identical people may both need care. One opts for care costing £650 whilst the other selects a care home with fees of £1,200. Surely the percentage paid has to be capped at the national average? Otherwise care home fees will rocket once again leaving those with low incomes without any real choice.
We suspect that the contributions made by the Government (at whatever percentage) will simply replace two existing non means tested benefits, Attendance Allowance and Nursing Care Allowance.
Voluntary Insurance
Again, a good idea in principle, but which companies will offer the products and how will they be made available? Although pre-funded insurance plans were previously available, the take-up rate was poor. It is vital that any product provider learns lessons from the past and makes future care plans both affordable and with realistic claims criteria.
Our experience of pre-funded insurance has not been a positive one, with the benefits being reviewed (downwards) once the insurer finds that claims are costing more than expected. Unless the problems with previous insurance plans can be resolved this would not be viable.
Also the government could find themselves bailing out insurers that had got their sums wrong!
Comprehensive
Reverting to the idea of a Cradle to Grave healthcare system is probably the least workable of all the proposals. It sounds great in principle, but the paper clearly says "everyone who can afford it" and who will decide this key point and set the limits?
So, at what fee level will the state pay? Care costs can vary enormously, even within the same postcode. Whether the national limit is set at £650 or £1,200 per week will remain to be seen, but our instincts tells us it will be at the lower end.
Don’t Hold Your Breath...
If Labour retains power at the election, the new legislation will not be phased in until 2014. This means an awfully long wait for the people either in care now or those 400,000 who will face the need for care sometime before 2014. Sadly, many won’t see the date arrive.