The role of young users in determining long term care expenditure in Norway

McArthur, D. P. , Tjerbo, T. and Hagen, T. P. (2013) The role of young users in determining long term care expenditure in Norway. Scandinavian Journal of Public Health, 41(5), pp. 486-491. (doi: 10.1177/1403494813482839)

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Abstract

<i>Aims</i>: In Norway, it is the responsibility of the country's 429 municipalities to provide long term care (LTC) services to their residents. Recent years have seen a sharp rise in the number of LTC users under the age of 65. This paper aims to explore the effect of this rise on LTC expenditure. <i>Methods</i>: Panel data models are used on data from municipalities from 1986 to 2011. An instrumental variable approach is also utilised to account for possible endogeneity related to the number of young users. <i>Results</i>: The number of young users appears to have a strong effect on LTC expenditure. There is also evidence of municipalities exercising discretion in defining eligibility criteria for young users in order to limit expenditure. Conclusions: The rise in the number of young LTC users presents a long-term challenge to the sustainability of LTC financing. The current budgeting system does not appear to fully compensate municipalities for expenditure on young LTC users. This may put strain on the financing of services for older users.

Item Type:Articles
Additional Information:The final, definitive version of this paper has been published in Scandinavian Journal of Public Health, Vol. 41(5), July 2013 by SAGE publications Ltd. All rights reserved. © The Nordic Societies of Public Health, 2013. It is available at: http:// sjp.sagepub.com
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Mcarthur, Dr David
Authors: McArthur, D. P., Tjerbo, T., and Hagen, T. P.
Subjects:H Social Sciences > H Social Sciences (General)
H Social Sciences > HJ Public Finance
College/School:College of Social Sciences > School of Social and Political Sciences
Journal Name:Scandinavian Journal of Public Health
Publisher:SAGE Publications
ISSN:1403-4948
ISSN (Online):1651-1905
Copyright Holders:Copyright © 2013 The Nordic Societies of Public Health
First Published:First published in Scandinavian Journal of Public Health 41(5):486-491
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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