Half-Private Elderly Care

John Lapidus ()
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John Lapidus: University of Gothenburg

Chapter Chapter 6 in The Quest for a Divided Welfare State, 2019, pp 87-97 from Springer

Abstract: Abstract Welfare to the elderly is becoming more unequally distributed due to tax breaks for privately provided elderly care. The chapter examines the so-called Rut deduction that can be used for home care as well as at retirement homes. The Rut deduction means that certain groups benefit from leaving the publicly funded system and instead pay their elderly care with a mixture of private and state money. These groups may have a reduced interest in the functioning of the public elderly care. It also implies something remarkable: if the private cost of a certain amount of home care is lower in the privately funded system than in the publicly funded system, then the privately funded system is actually more publicly funded than the publicly funded system.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-24784-3_6

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DOI: 10.1007/978-3-030-24784-3_6

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