European Social Network CESU social : a voucher to distribute public aid to dependent and disabled c

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European Social NetworkCESU social a
voucher to distribute public aid to dependent and
disabled citizens
Thursday, July 3rd 2008
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Agenda

• I. Context two specific social security benefits
  programs in France (APA and PCH)
• II. The solution chosen by several local
  authorities CESU social
• III. Characteristics of the product
• IV. Our experience in CESU social focus on two
  départements
• a. Haute-Corse CESU social for service
  providers
• b. Bouches-du-Rhône CESU social for direct
  employment
• V. Conclusion

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I. Context two specific social security
benefits programs in France

• PCH Compensatory Benefit for Disability
• Social program launched in January 2006
• Target people aged 20 to 60 with difficulty in
  carrying out essential activities of everyday
  life.
• 28 600 recipients in December 2007 vs 17 700 in
  June 2007
• Mean expense 1150 euros monthly

• APA Personalized Allocation for Autonomy
• Social program launched in January 2002
• Target people over 60, facing situations of
  autonomy loss. Amount varies with revenues and
  degree of dependence.
• Over 1 million recipients
• Growth of over 5 per year
• Mean expense 360 euros monthly

• Social security benefits programs administered
  by French départements (total of 100 local
  authorities).
• Necessity of controlling their implementation
  facing the steady growth of expenses.

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II. The solution chosen by several local
authorities CESU social

• Definition of CESU social (literally Universal
  Services Employment Vouchers) prepaid service
  vouchers given to recipients of social security
  benefits programs in order to finance their
  expenses for services to individuals
• Benefits of this system
• An efficient solution for the allocation of
  social programs
• Quick remittances of the vouchers to the
  recipients
• Accurate budget management
• Simplification of administrative tasks
• Statistical follow-up of the allocated resources
• A special voucher dedicated to care and support
  services guarantee that the allocation is spent
  for what it is meant
• A means of communication for the local authority
  greater understanding and visibility of social
  programs
• A simple program easy to set up and to follow
• Solution chosen by around ten Conseils Généraux
  (administrative bodies ruling a département)

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III. Characteristics of the product

• Legislative context
• The creation of the CESU is the key element of
  the development plan of care and support services
  launched by Minister Jean-Louis Borloo in 2005.
  Aim creation of 500 000 jobs in 3 years.
• The CESU was created by the 26th July 2005 law
  (Borloo law).
• Three major goals
• Simplifying the access and lowering the costs of
  quality services.
• Improving the income conditions of employees in
  this sector.
• Giving the associations and the firms a
  favourable legislative context in order to
  promote their activities.
• Two sorts of CESU exist together
• CESU social described above
• CESU RH is an employee benefit, like the
  Luncheon Voucher, which is distributed within
  companies and administration, cofinanced by
  employee and his employer, to provide greater
  access to population to services to individuals.
  In this particular case, a series of fiscal
  benefits are attached to the product, which
  enhance his development

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III. Two types of CESU
PAYERS
BENEFICIARIES
FINANCIAL SUPPORT
 CESU RH
Companies Local authorities
Employees, including managers
Chosen freely from 1 to 100
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III. Flow chart how CESU works
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III. Key market figures of CESU social
Volume issued (millions )
Annual growth rate
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IV. Our experience in CESU social focus on two
départements
Bouches du Rhône (Marseille) Direct employment

• CG 13 (Marseille)

Haute-Corse (Bastia) Service providers
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a. Haute-Corse CESU social for service
providers

• Example Conseil Général de Haute Corse (North
  Corsica)
• Launched in 2006 for APA and 2007 for PCH.
• Volume issued yearly 9 millions , 600 000
  vouchers
• 2 000 recipients
• 1 monthly order
• Benefits for the local authority
• Better communication around the social programm,
  and the fact that the local authority (and not
  the state nor social security) is financing it
• Better efficiency net savings in 10-20 range
  vs. previous system of direct payment
• Low administrative tasks to manage the program,
  as it is mainly outsourced to voucher provider
• Impact on service providers
• Possibility given to service providers to
  exchange electronically the information on the
  vouchers with the CR CESU. The payback becomes
  entirely paperless.
• Benefits of the system for service providers
• Reduction of the freight rates and insurance
  costs
• Reduction of the administrative tasks

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b. Bouches du Rhône CESU social for direct
employment (by mutual agreement)

• Example Conseil Général des Bouches du Rhône
  (Marseille)
• Launched in 2007 for APA
• Estimated volume for 2008 10 million
• 2 800 recipients
• 2 monthly orders
• Innovation the treatment of employers taxes
• The follow-up statistics give the local authority
  the opportunity to compute the employers taxes
  due by the beneficiaries on the amount allocated,
  and, if chosen so, to pay those taxes in lieu of
  the recipients.
• Thus, the local authority can have a clear
  picture of the real expenses and of the use of
  the social program.

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V. Conclusion

• The system of CESU Social vouchers
• An efficient solution quick delivery, precise
  allocation and use control.
• A development tool for the sector of care and
  support services ? growth and structuring of the
  market.
• Gives the opportunity to allocate financial
  resources to specific targets older, weakened,
  disabled people
• Dedicated to the payment of services well-adapted
  to the situations of the recipients.
• An adaptable and reactive system simplification
  of the administrative process, statistic
  follow-up.