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Dependency insurance in Belgium

Karakaya, Güngör (2009): Dependency insurance in Belgium.

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Abstract

In this paper we analyze the system of long-term care insurance currently in place in Belgium or rather in Flanders (the Dutch-speaking part of the country), since the French and German-speaking parts have not yet such insurance. More precisely, we review the scope, benefits, financing and functioning of the Flemish dependency insurance (called the Vlaamse Zorgverzekering) and present some statistics regarding the number of persons affiliated to the Vlaamse Zorgverzekering, the number and percentage of approved applications, the grants awarded by the Government of Flanders and the revenue and expenditure/costs relating to the Flemish dependency insurance system in order to comprehend the key factors explaining some evolution related to the dependency in Belgium. Analyses show that the adjustments and successive changes that the dependency insurance has undergone are explained by its success in terms of claims for benefits. We also find that the problem of equity and adverse selection favorable to the inhabitants of Brussels at the expense of the Flemish people is reduced owing to the different treatments for the two regions.

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