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Country Document Update 2014 Pensions, Health and Long-Term

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Country Document Update 2014 Pensions, Health and Long-Term Country Document Update 2014 Pensions, health and long-term care Denmark March 2014 Author: Jon Kvist Disclaimer: This report reflects the views of its authors and these are not necessarily those of either the European Commission or the Member States. On behalf of the European Commission DG Employment, Social Affairs and Inclusion asisp country document update 2014 Denmark Table of Contents Table of Contents 1 Executive Summary ........................................................................................................... 3 2 Pensions .............................................................................................................................. 4 2.1 System description ............................................................................................................................... 4 2.1.1 Major reforms that shaped the current system ....................................................................................... 4 2.1.2 System characteristics ............................................................................................................................ 4 2.1.3 Details on recent reforms ....................................................................................................................... 7 2.2 Assessment of strengths and weaknesses ........................................................................................... 8 2.2.1 Adequacy ............................................................................................................................................... 8 2.2.2 Sustainability ......................................................................................................................................... 9 2.2.3 Private pensions ................................................................................................................................... 10 2.2.4 Summary.............................................................................................................................................. 12 2.3 Reform debates .................................................................................................................................. 12 3 Health care ....................................................................................................................... 13 3.1 System description ............................................................................................................................. 13 3.1.1 Major reforms that shaped the current system ..................................................................................... 13 3.1.2 System characteristics .......................................................................................................................... 14 3.1.3 Details on recent reforms ..................................................................................................................... 15 3.2 Assessment of strengths and weaknesses ......................................................................................... 16 3.2.1 Coverage and access to services .......................................................................................................... 16 3.2.2 Quality and performance indicators ..................................................................................................... 16 3.2.3 Sustainability ....................................................................................................................................... 17 3.2.4 Summary.............................................................................................................................................. 17 3.3 Reform debates .................................................................................................................................. 17 4 Long-term care ................................................................................................................. 19 4.1 System description ............................................................................................................................. 19 4.1.1 Major reforms that shaped the current system ..................................................................................... 19 4.1.2 System characteristics .......................................................................................................................... 19 4.1.3 Details on recent reforms in the past 2-3 years .................................................................................... 19 4.2 Assessment of strengths and weaknesses ......................................................................................... 19 4.2.1 Coverage and access to services .......................................................................................................... 19 4.2.2 Quality and performance indicators ..................................................................................................... 20 4.2.3 Sustainability ....................................................................................................................................... 23 4.2.4 Summary.............................................................................................................................................. 23 4.3 Reform debates .................................................................................................................................. 24 5 References ......................................................................................................................... 29 Annex – Key publications ...................................................................................................... 32 2 asisp country document update 2014 Denmark Executive Summary 1 Executive Summary No major reforms have been adopted in pensions, health or long-term care from mid 2012 to March 2014. However, there has been noticeable changes as a result of changing demographics, austerity, and of reforms and projects under implementation just as there has been some input on coming policies as suggested by the government in health and by two commissions on, respectively, home help and nursing homes. One million persons above 65 years of age was reached for the first time in the second quarter of 2013 when Denmark had a population of 5.6 million people. Social expenditures rose with 3 percent from 2011 to 2012 mainly due to more expenditures related to old age. In pensions earlier reforms of increasing pension ages for the national old age pension and the voluntary early exit benefit are being implemented. In health care there have been no major reforms. Already initiated projects and measures continued such as the renovation of old hospitals and the building of new hospitals, municipalities getting a larger role for municipalities in preventive health, and digitalisation and other IT measures. Moreover, the Government announced its health policy in May 2013 under five headings: 1. A integrated health system 2. Larger equality in health 3. Strengthened acute care 4. Better quality and focus on results 5. A modern and efficient health system (Regeringen, 2013) Although these headlines indicate the priorities of the Government they are only backed by 600 million DKK. In long-term care, which is a municipal task, there has been no major reforms which may be explained by 2013 being an election year to municipalities (19 November 2013). However, ageing populations, stricter monitoring by central level of municipal finances, and generally more prudent municipalities has contributed to: De facto retrenchment in home help with fewer people receiving fewer hours of home help Continued expansion of home based solutions, including elderly housing, preventive home visits and earlier training and rehabilitation Rehabilitation and engaging citizens in meeting their own needs and making them more autonomous in general line of thinking that is reflected in both health and long-term care policy changes, government announcements and the recommendations made by Commissions. 3 asisp country document update 2014 Denmark Pensions 2 Pensions 2.1 System description 2.1.1 Major reforms that shaped the current system The Danish pension system1 of today is the result of three distinct waves of pensions reforms. In 1956 the national old age pension (folkepension) became a universal, flat-rate and non- means-tested benefit. Today, this is still the case, although the size of the benefit depends on number of years of residence and part of the pension is tested against other income. The national old age pension today forms the first pillar of the Danish pension system. In 1964, the compulsory ATP scheme got into being providing small, but important supplementary pensions for people that have been active in the labour market. These are largely independent on the size of previous earnings and contributions. The ATP scheme today forms a hybrid of a first and second pillar of the Danish pension system, hybrid because it relates to labour market attachment but with little relation to earnings and contribution record. In 1990, supplementary pensions, called labour market pensions (arbejdsmarkedspensioner), expanded to blue collar and new groups of white collar workers and as a result of collective agreements. Through further expansion of coverage and contributions by sector and through maturation these funded, defined contribution schemes today form the second pillar of the Danish pension system. Recent reforms have been concerned
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