Ageing, Health and Innovation: Policy Reforms to Enable Healthy
and Active Ageing in OECD Countries
Baroness Sally Greengross, International Longevity Centre UK Michael Hodin, Global Coalition on Aging
June 22, 2011
OECD Living Longer
2
40.0
45.0
50.0
55.0
60.0
65.0
70.0
75.0
80.0
85.0
1960 1970 1980 1990 2000 2007
Ag
e
Year
Life Expectancy in different OECD countries 1960-2007
Australia
Czech Republic
France
Iceland
Japan
Poland
Norway
Turkey
United Kingdom
OECD Declining Fertility
3
0
1
2
3
4
5
6
7
8
No
of
chil
dre
n
Number of children per woman aged 15-49
1970
1980
1990
2000
2006
OECD Aging Shift
4
0
1
2
3
4
5
6
7
8
9
10
85+ 80 - 84
75 - 79
70 - 74
65 - 69
60 - 64
55 - 59
50 - 54
45 - 49
40 - 44
35 - 39
30 - 34
25 - 29
20 - 24
15 - 19
10 - 14
5 - 9 0 - 4
Pro
po
rtio
n o
f th
e p
op
ula
tio
n
Age group
OECD population by age groups
1980
2000
2050
Shift in Old-Age Dependency Ratio
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Ra
tio
of
wo
rkin
g: i
na
ctiv
e p
eo
ple
Dependency ratio - selected OECD countries
Australia
Belgium
Finland
Germany
Italy
Japan
Mexico
Source: UN (2008)
Key driver for “zero sum” policies changes, e.g. reducing benefits and increasing tax/social security contributions
5
Zero-Sum Approach: Challenge and Conflict
Young OR
Old? Traditional Workforce
Solutions are incremental
• Increase retirement age
• Adjust benefit payouts
• Higher healthcare co-payments, contributions
Belief that baby boomers are bringing massive health and social care costs, which are being paid for by smaller younger cohorts and that older workers working longer blocks jobs for the young
6
Life Course Approach: Leads to Opportunities
Core Assumptions
• Each generation provides value to society
• Requires a focus on seniors staying active and productive
• Seniors have experience and knowledge to benefit the marketplace
• Re-think “Middle Age” and “Seniors”
• Society does have room to accommodate both older and younger workers
Belief that employers and younger workers can benefit from the skills and experience of older workers and that as the older population becomes larger, the more important it becomes as a consumer market for existing products and services and new innovations
Pool of Opportunity
Grows
Zero-Sum Approach
Life Course Approach
7
OECD Focus Areas
Address Chronic Disease
Increase Technological Innovation
Reform Health Care Funding Models
Keep Older Individuals Independent and
Productive as They Age
Live Longer AND Better
8
OECD Powered by Innovation
• Research and investment in biomedical and biotech fields
• Focus on disease prevention and management
• Policy reforms promoting healthy and active lifestyles, community engagement and personal independence (e.g. Age-friendly Cities)
9
OECD Non-Health Policy Reforms
Pensions
• Raising normal retirement age • Limiting early retirement to allow more contributions
and delayed payouts • Promoting personal savings through tax incentives
Work
• Possibility of adjusting starting date of pension benefits
• Adjustment of older labor supply
• Changes in market institutions and conditions to accommodate later retirement
• Age-related tax credits for business and Individuals
• New skills and learning
Housing
• Owner Occupier Retirement Housing (OORH) – apartment blocks with communal facilities and support staff
• Integrate housing and workplace
• New architecture and engineering – MIT Age Lab/UK Business Lab
10
OECD Health Policy Reforms • National Institute of
Health and Clinical Excellence (UK)
• High Authority for Health (France)
• Institute for Quality and Economics in Healthcare (Germany)
• Drive innovative medical science for NCD progress – Alzheimer’s to Sarcopenia
Pharmaceutical Care Reviews
• Prescriptions per person down from 12.4 to 10.7 (Sweden)
• 73% of nursing home patients inappropriately prescribed medications (Ireland)
• Pre-funding health care (Canada)
• Mandatory long-term care insurance (Japan)
• “Reshaping Care” (Scotland)
• Patient hotels (Scandinavia)
11
Wellness Case Study: Scotland
“Reshaping Care in Scotland” themes:
• Partnerships in a community business model to keep people out of the formal care system
• Helping people remain at home using telecare and home adaptation, supporting healthy ageing through diet, exercise and falls prevention
• Creating effective care pathways including anticipatory care plans, managed care networks, re-ablement, and implementation of the dementia strategy.
We must “change attitudes and implement a philosophical shift from a culture of “dependence” and “incapacity” to one of “independence” and “capacity.””
If care services for older people in Scotland were to continue as they had been, there would be a 22% rise in costs by 2016.
12
Technology Case Study: CAALYX Project
EU-funded home monitoring system for older individuals living alone or with chronic conditions
Uses sensors in garments to monitor patient’s physiological parameters and alert health care staff if needed
Allows patient to interact with monitoring system through smart phone and with family and health care team through television using modified Nintendo Wii
Monitors temperature, falls and mobility through component with sensors that can alert health care system
“Caretaker System”
“Mobile System”
“Home System”
“Wearable Light Device”
Links patient to health care team and relatives
13
European Innovation Partnership on Active and Healthy Ageing
Health and Prevention
Collaborative Care Systems
Activity and Independence
Areas for Innovation and Action
Goals:
• Enable healthy, active, independent living as we age
• Improve sustainability of health and social care systems
• Create new opportunities for business and growth
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