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)

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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.

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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

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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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