Government green paper expected to clarify insurer role
The Telegraph has revived rumours that the government will introduce compulsory long-term care insurance ahead of the planned release of a Green Paper on future funding or elderly care.
The paper says “It is widely agreed that it would be far too costly to provide free personal care for all, so a compulsory insurance plan is one of the favoured options for a long-overdue Green Paper on adult social care due to be published in the New Year. Forcing individuals to take out policies with private firms would reduce the cost to the government and avoid suggestions of a new stealth tax.”
Compulsory insurance was one of a number of options in a consultation document published in May.
The Telegraph says: “Since then the government has held extensive talks on the possibilities for implementation with the insurance industry which believes it has a ‘key role’ to play. Officials have also consulted experts from Japan where a compulsory insurance system is credited with lowering the burden of care on family members and reducing lengthy hospital stays among the elderly.”
The paper quotes the Care Services Minister, Phil Hope, as saying: "We know private insurance plays a substantial role in other countries' systems, including France. However we have made no decisions yet about the future."
The Green Paper is due to be published early in 2009. Few commentators believe compulsory insurance will be the chosen response.
