After the launch of long-term care insurance in Germany: analyzing the transition of LTCI from 1999 to 2005 by state

Abstract

This study focuses on the public long-term care insurance (LTCI) program in Germany, considers the progress of LTCI in view of economic indicators from the 16 inland states (Lander in Germany) from 1999 to 2005, shows transitions by each state, and describes the latest problems concerning the LTCI program. A principal component analysis was conducted using 21 variables related to LTCI. Four interpretable significant principal components were found. Component I clearly demonstrated a relationship between individual economic strength and care. It is labeled economics for care. Component II is associated with the availability of home care services. It is labeled tendency to use home care services. Component III is related to the use of nursing homes. It is labeled tendency to use nursing homes. Component IV showed a relationship between aging and needing care. It is labeled aging and needing care. The economics for care component showed the highest scores for Baden-Wurttemberg and lowest scores for Mecklenburg-Vorpommern. The tendency to use home care services component showed Hamburg demonstrating the highest scores and Bayern the lowest scores. The tendency to use nursing homes component showed Schleswig-Holstein with the highest scores and Bremen with the lowest scores. The aging and needing care showed Schleswig-Holstein and Berlin with the highest scores and Sachsen with the lowest scores. LTCI in Germany tended to become popular according to regional needs. The tendency of benefits for each region came to be recognized as fitting each local lifestyle, economic strength, size of population, and so on. City states appeared to use home care services. Other states seemed to prefer care at nursing homes to care at home. Furthermore, people seemed to prefer using professional home care services to using care allowances at home year by year. Finally, this study suggested that the number of people needing care tended to decrease even though aging progressed.