[Break-even points in the costs of care to the elderly]

Following a preliminary study in 1987 for the Central Committee of Residential Homes on the extent to which the elderly make use of home and health care institutions and at what costs, a study was conducted on the relation between the costs of home and health care for the elderly and the level of dependency taking into account the housing situation. In addition attention has been given to the question whether residential care at a given level of dependency incurs less costs than home care: the so-called break-even points. It appeared that in the case of physical disability, break-even points clearly exist when all costs are considered, but differ from those, if any, calculated on the basis of costs with which the elderly themselves are faced. It appears that old people belonging to the lower income groups will be inclined or rather forced to give up their independent life. It was calculated that about 40% of the elderly with physical handicaps are financially better off if they apply for residential care. On the other hand the higher income group--the remaining 60%--is financially better off if they remain in their own homes. It is recommended to search for a solution to these problems, so that old people with a low income may enjoy their independence to a larger extent while avoiding a social loss of resources as a result of too early admission to an institution.