Inquiry Regarding the Care Reform (no 649)
Session: 15th Riigikogu, 4th session, plenary sitting
Date: 2024-10-21 19:54
Participating Politicians:
Total Speeches: 35
Membership: 15
Agenda Duration: 46m
AI Summaries: 35/35 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed the second agenda item, which concerned the inquiry submitted on September 17 by members of the Riigikogu: Lauri Laats, Aleksandr Tšaplõgin, Vadim Belobrovtsev, Aleksei Jevgrafov, Andrei Korobeinik, and Vladimir Arhipov regarding the care reform. The inquiry addressed the distribution of care responsibilities and funding between local governments and the state, the reform’s impact on general care, the growth of home care services, and potential legal resolutions in light of the National Audit Office’s audit results. The central theme was whether and how the accessibility, affordability, and quality of services are ensured, and what the financial risks are for local governments related to the increase in care costs.
Decisions Made 1
No decisions were made on the agenda.
Most Active Speaker
The most active speaker was Signe Riisalo, Minister of Social Protection of the Riigikogu; position: minister (member of the government); category: other.
Esimees Lauri Hussar
AI Summary
The second item on today's agenda is the query regarding the care reform, submitted on September 17th of the current year by Riigikogu members Lauri Laats, Aleksandr Tšaplõgin, Vadim Belobrovtsev, Aleksei Jevgrafov, Andrei Korobeinik, and Vladimir Arhipov. The rapporteur for this item is Riigikogu member Lauri Laats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stated that the Center Party faction submitted six questions to Social Minister Riisalo concerning the care reform. He emphasized that the care reform, which entered into force on July 1, 2023, imposed an obligation on local authorities to provide additional funding for organizing long-term care. Furthermore, the Supreme Court ruling confirms that if funds are insufficient, local governments have the right to demand supplementary resources through the courts. Consequently, several local authorities are considering legal action due to the high costs of nursing homes and the resulting additional expenses incurred against the backdrop of pensioners' low incomes. The faction hopes for a constructive dialogue and comprehensive answers to the six questions they have posed.
Esimees Lauri Hussar
AI Summary
The Speaker invited the Minister of Social Protection, Signe Riisalo, to the Riigikogu podium to answer the interpellation.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
In the Riigikogu, Minister of Social Protection Signe Riisalo stated that the care reform will enhance cooperation between the state and local governments in financing long-term care. This is intended to ensure the availability, affordability, and quality of services by increasing the proportion of home-based services and standardizing resources across various municipalities. However, costs are increasing, and the total expenditure for 2025 is projected to be 205.3 million euros, with 66.1 million of that amount coming from additional state funding.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi announced that time had run out, and if no one objected, he would exceptionally grant an additional three to four minutes, even though this was not the rule and everyone was in agreement.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
According to Riisalo, resources are being allocated to local governments to balance elderly care by prioritizing home services, which are more humane and cost-effective for society, and help informal caregivers join the labor market. The reform has boosted service availability and lowered out-of-pocket costs, despite rising prices and wages. Furthermore, 68 care homes have already met the quality standards set to take effect in 2026. In 2023, there was an increase of 940 service recipients and 715 new service places (80% of which came after the reform). Local governments will also receive an extra 33.3 million in foreign funding to improve living conditions.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi offered his thanks and called for questions, while simultaneously inviting Helle-Moonika Helme to take the floor.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme is criticizing the care reform, arguing that while the state has provided historically significant aid to care homes, this move has actually increased the financial burden on individuals and made nursing home placements unaffordable for many. Meanwhile, the revenue base of the Südamekodud chain, along with the income derived from residents’ relatives, has grown astronomically.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi thanks the audience.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The question is whether his fellow party members are at least grateful to him for it.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
Riisalo stressed that people’s expenses have not risen—they are now paying 50% of the service costs this year, down from 82% previously—and a spot in a care home is accessible for the average pension. He added that the promises and goals remain firm, but local municipalities need to be questioned regarding how much of their revenue base is allocated to various service providers, irrespective of the care home's ownership status.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invited Anastassia Kovalenko-Kõlvart to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The presentation criticizes the bill adopted last week, which withdraws the support intended for single-living pensioners from those pensioners who reside in care homes. It questions whether the money will be used for the care reform, mentions the possibility of local governments taking the state to court, and emphasizes that such litigation does not constitute a proportional use of resources.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
Riisalo confirmed that 1.88% of individual income tax will be allocated to local government budgets for the financing of general care, along with an equalization fund. This fund guarantees every client at least 379 euros per month (the total sum being 66.1 million euros, which is 11% more than projected in the 2022 forecast). Furthermore, local governments are free to decide on the organization of the care service and on litigation matters, to determine the price of the care component (averaging 590–600 euros per client per month), and to communicate with ministries as they normally would.
Aseesimees Toomas Kivimägi
AI Summary
This is just a brief invitation to call Lauri Laats to the stage.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats inquired about the funding of local municipalities: the 2023 deficit for nine local governments totaled 450,000 euros, which was apparently set aside. He requested the forecast for the end of 2024 and confirmation regarding that specific amount. Furthermore, he discussed the Supreme Court ruling, according to which municipalities with additional obligations may request funds from the state, and asked why the case was brought to court and why the court ruled in that manner.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
The 2024 budget forecast projects a surplus of 7.9 million, and 4.5 million for 2025. Furthermore, the second phase of the reform is expected to facilitate the expansion of home services, the establishment of service houses using European funds, and an additional 33.3 million allocated to local governments. Nevertheless, the local governments filed a lawsuit, and the Supreme Court stated that this is indeed the duty of the local governments.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Riina Solman to speak.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman thanked the minister for the promise that the average pension would cover the cost of a nursing home placement, but stressed that if this promise had not reached all people, it was not a reality. Furthermore, stemming from the price increases, she asked whether a price cap would be set for care home services.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
The state cannot impose very strict price caps on care home services for local municipalities, because the municipalities themselves determine which person requires which service and to what extent it will be compensated; when resources and demand balance out, prices will stabilize, and the provision of home services will increase alongside pension growth.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi called upon Vadim Belobrovtsev to speak.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
The government, led by the Reform Party, has decided to impose income tax on the average pension starting next year. The income tax-free threshold will remain at 776 euros per month, meaning that pensioners will receive over 120 euros less next year, and this amount will increase due to indexation. Furthermore, the question is being raised whether any calculations have been made regarding how this will impact the payment of nursing home fees.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
Riisalo stated that although the old-age pension was tax-free for a short period, and pensioners are currently in a better situation compared to employees thanks to a higher income tax exemption, painful changes had to be made due to the war and the state budget situation. He added that the goal of the reform is to increase funding for local governments, not through a support fund, but directly through social tax revenue collection.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi called Andrei Korobeinik to the stage.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik asks for more details regarding the impact on pensions: specifically, whether the loss of 15 euros and the 2% reduction in pension payments have already been factored into the forecasts, and when a correction will be implemented as a result.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
Riisalo confirmed that the surplus for 2024 stands at 7.9 million, the average pension has been factored in for 2025, and while forecasts are being drawn up for 2026, he is unable to state the precise figure.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi invited Aleksei Jevgrafov for a discussion.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Questions were raised regarding state funding for local governments to construct nursing homes, because the number of people requiring the service is growing and the waiting times are long.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
Riisalo stated that due to low income in the region, there was a lack of funds for services, and consequently, no interest in establishing facilities, but these must now be created. The state does not support the construction of general nursing homes; instead, it provides project-based funding for assisted living homes and home services that enable independent living with minimal support. Following the reform, 715 new service places were added, and at least 300 more are expected in the coming years, and he hopes for the creation of these places in Ida-Virumaa.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi calls upon Helmen Kütt.
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Helmen Kütt thanks the presiding officer and the minister and emphasizes that the state must support local governments in providing general life-cycle care services, pointing to the varying approaches taken by local governments and the decrease in their participation, confirms that local governments and procurement processes play a greater role in the service house project, and requests a written answer regarding when the new round will open and what sums have been planned.
Sotsiaalkaitseminister Signe Riisalo
AI Summary
According to Riisalo, one round is full and the next cannot be opened, but the reform is people-centered, and efforts are being made together with local governments and the Riigikogu to solve the difficulties so that people can access services.
Aseesimees Toomas Kivimägi
AI Summary
The speaker thanked the minister, announced that there were no further questions, opened the floor for discussion, and addressed Lauri Laats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
In his speech, Lauri Laats highlighted the misunderstandings and concerns that arose during the implementation of the general care service and the care reform, emphasized the personnel shortage and budgetary problems faced by local governments, the lack of nursing home places, and rising costs, and called on the minister to share clearer information and facilitate a constructive discussion with local officials through the Estonian Centre Party faction.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi gratefully announced that the negotiations have concluded and the consideration of this agenda item is finished, and we can now proceed to the next one.