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Sweden’s health care future

Is universal access in peril?

by Stefan Ackerby

The Swedish welfare state is one of the most generous and comprehensive in the developed world. For Swedes it is deeply entrenched as a reflection of egalitarian values. The fact that Sweden scores high on many indicators of trust and social cohesion is often linked to the general principle of universal access to social programs, in contrast to the more selective principles of access applied in many other countries.

Accordingly, the future financial sustainability of the welfare state in general and health care in particular is crucial to Swedish society. Several projections of future demographic developments indicate that the present organization, financing and functioning of the Swedish health care system will require a substantial increase in taxes. Will the aging population create financial strains that ultimately make it necessary to abandon universal access to health care?

So far the political answer to such projections has consisted of proposals to increase employment, lower the average age at which working life begins, postpone retirement or raise efficiency in the provision of public services. High employment has always been a priority in Swedish economic policy. The current intense debate about retirement age will probably lead to legislation delaying retirement. Over the last two decades major efforts to make service delivery more efficient have been undertaken, especially at the local government level.1

But so far the principle of financing social programs through general tax revenue and providing equal access to services for all has not been challenged, and polls show that it would be politically dangerous for any politician to do so. Support for the principle is especially strong in the case of health care. According to several polls, a large majority are prepared to pay higher taxes if necessary to maintain the standards and principles of health care provision. The problem is that the same majority would probably adjust their employment and working hours, their tax compliance and their willingness to invest in skills training in response to higher taxes.

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About the Author

Stefan Ackerby
Stefan Ackerby is Deputy Chief Economist with the Swedish Association of Local Authorities and Regions, based in Stockholm.




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