The Minister of Health has announced that the next Social Security budget will be endowed with at least an additional billion euros to finance the loss of autonomy of the elderly and disabled.
- A fifth branch of Social Security dedicated to autonomy will be created
- In twenty years, the over 75s will have doubled to 10.6 million
- The terms and financing will be specified in mid-September
Before the Assembly this Monday, June 15, the Minister of Health, Olivier Véran, assured that there would be “at least one billion euros” additional to finance the loss of autonomy of the elderly and disabled, in the next Social Security budget presented in the fall. “As part of the next Social Security budget, presented in the fall for the year 2021, there will be at least one billion euros in funding that will be identified to top up the National Solidarity Fund for Autonomy and therefore pay expenses in the field of loss of autonomy”, he clarified.
In 20 years, the over 75s will have doubled
This new endowment is part of the creation of a fifth branch of Social Security dedicated to autonomy. This would cover life risks related to loss of autonomy and disability. It is part of the “Social Debt and Autonomy Bill” and will be added from 2021 to the four other branches: illness, family, old age and accidents at work – occupational diseases. The modalities and financing of this fifth branch are referred to a report in mid-September. This reform has been necessary for several years but has always been postponed. Desired by Nicolas Sarkozy but postponed in 2009 because of the economic crisis and passed over in silence under the mandate of François Hollande, the creation of funding dedicated to dependency and old age is about to materialize. In twenty years, the over 75s will have doubled to 10.6 million.
The needs of the sectorold age” oscillate between 6 and 10 billion euros per year, according to the Libault report on dependency of March 2019as reported The Parisian. This report contains 175 proposals, including the renovation of accommodation establishments for the elderly (3 billion euros over ten years), the creation of 80,000 jobs in nursing homes (1.2 billion euros per year) , assistance and support at home (550 million euros per year). A national training and attractiveness plan for old age professions is also proposed, the financing of carers’ leave as well as aid of €300 for residents of nursing homes with resources of less than €1,600 per month.
52 billion euros deficit for Social Security
The unprecedented situation in which France finds itself, in the grip of a health crisis, justifies the creation of this fifth branch being done first by financing and then by law. Voted by a majority of the committee, this text, presented by the LREM deputy for Charente Thomas Mesnier, will establish dependency financing, from 2024 and will create the 5and de facto branch. “By 2024, government and social partners will have to find specific fundingadmitted Thomas Mesnier in committee. The idea is to move forward, to set dependency funding in stone. (…) It’s a start: we create the house, we still have to define what we put inside and how it is managed.”
The coronavirus crisis has plunged Social Security into a record deficit of 52 billion euros. All branches will be in the red this year, according to a summary of the Audit Committee. The health branch is the most affected with a deficit estimated at 31.1 billion euros, which corresponds to the purchase of masks and equipment, bonuses and overtime, work stoppages or even screening tests.
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