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The Future of Long-term Care in Quebec: What are the Cost Savings from a Realistic Shift Towards more Home Care?

Author

Listed:
  • Nicholas-James Clavet
  • Réjean Hébert
  • Pierre-Carl Michaud
  • Julien Navaux
Abstract
This paper aims to estimate the future long-term care needs and expenditures in Quebec while proposing and evaluating a reform package that could deliver increased coverage as well as be more financially sustainable than current policy. This reform package consists of a shift towards more intensive use of home care while increasing public coverage of care needs. A key feature of the proposed reform is to improve the ability of users to choose their provider with the creation of a senior’s care account, an account that grants individuals in need to purchase services from several providers, including both home and institutional care. To improve the neutrality of public support across care arrangements, we also propose to increase residents’ contribution in nursing homes while favoring the continued use of existing tax credits to help seniors with lower needs in terms of care. Using detailed dynamic modelling of care needs, living arrangements, and expenditures, we estimate that long-term care needs will grow rapidly in the next two decades and the costs will quickly become prohibitive under current policy. We show that substantial cost savings may exist.

Suggested Citation

  • Nicholas-James Clavet & Réjean Hébert & Pierre-Carl Michaud & Julien Navaux, 2022. "The Future of Long-term Care in Quebec: What are the Cost Savings from a Realistic Shift Towards more Home Care?," Cahiers de recherche / Working Papers 2201, Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics.
    • Handle: RePEc:rsi:creeic:2201
    as

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    File URL: https://creei.ca/wp-content/uploads/2022/04/cahier_22_01_future_long-term_care_quebec_cost_savings_shift_home_care.pdf
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    References listed on IDEAS

    as
    1. Martin Boyer & Philippe Donder & Claude Fluet & Marie-Louise Leroux & Pierre-Carl Michaud, 2019. "Long-term care risk misperceptions," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(2), pages 183-215, April.
    2. Achou, Bertrand & De Donder, Philippe & Glenzer, Franca & Lee, Minjoon & Leroux, Marie-Louise, 2022. "Nursing home aversion post-pandemic: Implications for savings and long-term care policy," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 1-21.
    3. M. Martin Boyer & Philippe De Donder & Claude Fluet & Marie-Louise Leroux & Pierre-Carl Michaud, 2020. "Long-Term Care Insurance: Information Frictions and Selection," American Economic Journal: Economic Policy, American Economic Association, vol. 12(3), pages 134-169, August.
    4. Ake Blomqvist & Colin Busby, 2012. "Long-Term Care for the Elderly: Challenges and Policy Options," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 367, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    long-term care; population aging; public finances; soins de longue durée; vieillissement démographique; finances publiques.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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