November 1999 Long Term Care Insurance(Special measures for smooth introduction)

17. Number of the six monthly survey, in which the reform was reported the first time

    No. 1 /1999

18. Title

    Long-Term Care Insurance (Special measures for smooth introduction)

19. Description of changes
    • Reduction of Insurance Premiums

      (For 65 years old and over) No premium between April to September, 2000. It will be covered by the national budget. 50% reduction of the premium between October 2000 to September 2001.
      (For those between 40 and 64 years old) For this category of insured persons, the premium for the Long-Term Care Insurance is added to the premium for health insurance. However, the total of 1 year worth of additional amount of premiums for all the insured will be covered by national budget.

    • Reduction of co-payment for low-income households

      For low-income households, the co-payment rate will be reduced to 3% from 10% previously.

    • In-Cash Assistance for Those caring for elderly at home.

      The Government has decided to provide maximum of Yen 100,000 per elderly to a municipality which decides to give assistance, outside the Long-Term Care Insurance system, to those who choose to take care of them by family members themselves.

20. Description of (first) results

    Expected to start in April 2000.

21. Personal judgement concerning the changes or (first) results

    The reason that this measure for "smooth implementation" of introduction of Long-Term Care Insurance was suddenly placed on the agenda is political. In summary:

    1. Need to appear to the masses due to approaching general election;
    2. The differences of views on the Insurance expressed by three parties which consist current coalition government;
    3. Political battle within the coalition government and opposing parties;
    However, the new changes just a half year before the introduction of the scheme are confusing actual implementing bodies (i.e. municipalities) which are busy preparing and explaining to the residents about the long-Term Care Insurance.

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