Finnish economy 2040

Public finance simulator

All effects

Outpatient care cuts raise disability pensions

Confidence: Low
On by default
Shape: Delayed

When outpatient care – for example primary care and mental-health services – is cut, some illnesses drag on and lead to a disability pension a few years later. The increase shows in sickness and disability spending.

Of every 100 euros that a change to “Outpatient care” saves or brings in, 10 € comes back as extra spending on the line “Social protection: sickness and disability”, starting after 3 yrs and building up to its full size over 5 yrs. (The other way round if the change adds spending or cuts taxes.)

E(t) = s × T(t) × min(1, max(0, (n − delay + 1) / build-up))

How the effect builds up over time

Share of the change's own effect on the balance, year by year while the change continues: −15% means 15% of a saving comes back as cost (or 15% of extra revenue is lost). With the default values.

You can switch the effect on or off and adjust its assumptions in the simulator under Cause-and-effect chains.