2001 Volume 1 Pages 54-65
In the 1990’s several industrialized countries conducted fundamental reforms of their social security systems, marking a new era in the history of social security. These changes came after strong pressure to reform social security programs to become more sustainable in an era of rapid demographic changes and low economic growth. In this paper, we focus on pension reform of 1999 in Sweden, health insurance reform of 1993 in Germany and the Care Standard Act of 2000 to secure quality of social services in United Kingdom.
In January 1999, a new pension system started in Sweden. Major characteristics of the reforms are separation of the principles of insurance and income redistribution, the introduction of quasi-defrned contribution pension on a pay-as-you-go system, a vital stable rate of premium and automatic balancing system of long-term financing. Accordingly, benefits for old-age pension depends on contributions, and lower-income pensioners can get an additional minimum pension financed by general taxation, from the age 61 and older.
With introduction of the Medical Reform of 1993 and the third Medical Insurance Reform of 1997 in Germany, the funds of public medical insurance are required to improve their self-regulation and self-responsibility on a stronger financial basis. The insured are allowed to choose any public medical insurance funds, many funds are encouraged to merge, and a risk-adjustment structure was introduced. The introduction of competition between public medical funds is the first such experience in a any health insurance system.
In the United Kingdom, with the introduction of NHS and Community Care Act 1990, the social services departments of local councils were required to set up registration and inspection unit and a transparent system of complaint resolution. The Care Standard Act of 2000 reforms the regulatory system for care services in England and Wales. The National Care Standard Commission was established as an independent body to regulate social and health care services previously administered by local councils and regulated by health authorities. The Care Standard Act applies to home care and residential care agencies, foster care agencies and residential family centers. In addition, the Best Values of the Local Government Act of 1999 based on the “new public management” principle for consumer satisfaction applies to all local government services, including social services.
