Social Security and Health

The functioning of the social security system should be designed as a sustainable structure taking into consideration the changes in the demographic structure (such as the ageing of the population) and the negative developments in the other elements of public finance (such as the necessity of domestic borrowing). Along the path of a radical reform; there should be a transition from the deferred expense systems to funded systems based on individual accounts, as can be observed in the examples on an international scale. Two more pillars based on mandatory and voluntary individual accounts should be added to the current system continuing with contracted premium rates. The effects of this system can be listed as follows; the long term savings accumulated in the individual accounts paving the way for the development and deepening of the capital markets, the increasing domestic savings boosting the level of investment and income, the fall in the premium rates abating the appeal of informal economy and providing a higher level of retirement income in comparison to the current system with a lower deduction rate on a long term.

The health services is the most important field in the public social security spendings that are offered by being transformed into service. Activities for improvement in the health system should be continued while the sustainability of public health spendings is protected. There is a need for policies that will enable more active health spendings control mechanisms, encourage further improvement in the field of productivity and provide equity in terms of access. In relation to obtaining the use of all production factors that will increase the quality/quantity of the health service; rational cost and payback methods should be taken as the basis without any discrimination between the public and private sector and a system should be established that prioritises the health service offered just as much as the budget allocation and follows up the results with an independent control mechanism. It should be taken into consideration that pricing and planning in health are critical processes that have a direct effect on all the sector.

TÜSİAD Social Affairs Committee
Employment and Social Security Working Group
Health Working Group