Cost Trends in Long Term Care in Japan and Sweden over the Period 2000 to 2010

Japan and Sweden have similar ambitions and both similarities and differences when it comes to provide long term care (LTC) for their old age citizens. The study compares cost increase for LTC in Japan and Sweden in the time period 2000–2010 by decomposing the changes in costs into changes in the size of the old age population (65 years and above) , the distribution on level of dependency /disability by age-group and gender, the volume of provided LTC services in relation to level of dependency/disability and the unit costs for provided services. The analysis of needs of LTC services is based upon nationally representative sample surveys population studies completed in each country: Nihon University Japanese Longitudial Study of Aging and the Swedish Survey of Living Conditions with 19. 602 and 9.433 observations respectively. Data on LTC services provision by level of dependency/ disability is taken from nine Japanese municipalities collected by assessments in the LTCI-system and from surveys in eight Swedish municipalities. It is shown by the analysis that the rapid cost increase in Japan in the period 2000–2010, 108 %, has mainly been driven by the increase in the old age population. However, another important factor in the period 2000–2005 has been increased provision of LTC services given level of dependency. In Sweden the cost increase depending on population increase has been countered by decreasing levels of disability by age-groupand gender. Services provision given needs of LTC has not increased very much. As a result the cost increase in the time period 2000–2010 has been much lower, +6 %.