Health care insurance 'on the cards'

14 July 2009



The government is expected to announce that older people should pay for insurance to fund their long-term health care. It is believed to form part of a green paper being presented today (14 July), which will suggest changes to the current provision of residential and home-based care.

Called Shaping the Future of Care Together, the proposals would involve creating a national care service, as the provision of facilities is currently allocated on a means-tested basis. Commenting on the subject on BBC Radio, Health Secretary Andy Burnham said: "The care system today I would say is an unreformed part of our public sector. It's a cruel lottery."

It is anticipated that the insurance scheme will be paid for through a lump sum taken from a person's estate, or from payments made throughout their working lives. At present, people can pay thousands of pounds for care, which is sometimes funded through equity release.

Camilla James, elder law specialist, comments: "Whilst it is good news that the government are proposing to address the situation regarding care fees it does appear that the devil is likely to be in the detail. If an insurance based scheme is introduced the issue of cost will still be a factor. We await the details."

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