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A fact finding analysis on the impact on the

Member States' social security systems of the

entitlements of non-active intra-EU migrants tospecial non-contributory cash benefits and

healthcare granted on the basis of residence

DG Employment, Social Affairs and Inclusion via DG Justice Framework

Contract

Final report submitted by ICF GHK in association with Milieu Ltd

14 October 2013

The contents of this publication do not necessarily reflect the position or opinion of the European Commission.

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Document Control

Document Title Fact finding analysis on the impact on Member States social security systems of theentitlements of non-active intra-EU migrants to special non-contributory cash

benefits and healthcare granted on the basis of residence

Job number 30259512

Prepared by Carmen Juravle, Tina Weber, Emanuela Canetta, Elena Fries Tersch, MartinaKadunc

Case studies: Dolores Carrascosa (ES), Ines Maillart (FR), Gijs Nolet and Linda deKeyser (NL),Josephine Armstrong (UK), Elena Fries-Tersch (AT)

Checked by Tina Weber

Date 19 September 2013

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Contents

Executive Summary 10 core findings ................................................................................ i

1 Introduction .........................................................................................................11.1 Overview .................................................................................................................................. 11.2 Brief legal and policy context of the study................................................................................ 11.3 Objective and aims of the study ............................................................................................... 21.4 Scope of the study and conceptual clarifications ..................................................................... 31.5 Structure of this report .............................................................................................................. 8

2 Overview of methodology ....................................................................................92.1 Overview of analytical approach for this study ........................................................................ 92.2 Details of the research methods used ..................................................................................... 9

3 Analysis of the population of non-active intra-EU migrants ................................. 133.1 Overall stocks of non-active intra-EU migrants resident in the EU Member States .............. 13

3.2 Labour market transitions between non-activity and employment ......................................... 263.3 Jobseekers ............................................................................................................................. 273.4 Pensioners ............................................................................................................................. 323.5 Students ................................................................................................................................. 333.6 Single parents not in employment .......................................................................................... 353.7 Disabled persons not in employment ..................................................................................... 35

4 Identification of past and future drivers of mobility of non-active EU citizens ...... 384.1 Introduction ............................................................................................................................ 384.2 Macro-economic factors ......................................................................................................... 394.3 The role of welfare generosity: The social security magnet and social security overuse

hypotheses ............................................................................................................................. 444.4 Demographic factors .............................................................................................................. 55

4.5 Educational opportunities ....................................................................................................... 564.6 Socio-cultural factors .............................................................................................................. 584.7 Individual and household-related factors ............................................................................... 58

5 Access of non-active intra-EU migrants to SNCBs and budgetary impacts ............ 635.1 Access to SNCBs ................................................................................................................... 635.2 Budgetary impacts of SCNBs use by non-active intra-EU migrants ...................................... 78

6 Access of non-active intra-EU migrants to healthcare and budgetary impacts ...... 856.1 Overview ................................................................................................................................ 856.2 Demand for healthcare services ............................................................................................ 856.3 Proposed methodological approach ...................................................................................... 866.4 Strengths and limitations of our approach to estimating healthcare expenditure

associated with non-active EU migrants ................................................................................ 916.5 Results ................................................................................................................................... 92

7 Case Study 1 Access by non-active EU migrants to (Couverture Maladie

Universelle) CMU in France ................................................................................ 97

8 Case study 2 Access by EU pensioners to healthcare in Spain........................... 116

9 Case study 3 Access by EU pensioners to the compensatory supplement

Ausgleichszulage of Act 9 September 1955 in Austria ....................................... 140

10 Case study 4 Access by jobseekers to the income-based allowances for

jobseekers of Jobseekers Act 1995 in the UK .................................................... 163

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11 Case study 5 Access by non-active EU migrants with disabilities to the Wajong

benefit (Work and Employment Support for Disabled Young Persons Act of 24

April 1997) in the Netherlands ......................................................................... 182

12 Summary of findings ......................................................................................... 199Annex 1 List of special non-contributory cash benefits as listed in EC Regulation

883/2004 .............................................................................................................. 206

Annex 2 Mapping of national health care systems ............................................... 210

Annex 3 List of references .................................................................................... 224

Annex 4 Shares of EU migrants, non-active EU migrants and non-active EU

migrants without economically active household members in total population by

country (2002 2011) based on EU-LFS .......................................................................... 229

Annex 5 Numbers of non-active intra-EU migrants aged 15 and above by Member

State, 2002-2012 ............................................................................................................ 233

Annex 6 Numbers of EU migrants aged 65 and above, EU-27, 2003-2011 .............. 235

Annex 7 List of stakeholders consulted (not published) ........................................ 236

Annex 8 Annexes to Case study 1 France ......................................................... 23737

Annex 9 Annexes to Case study 2 -Spain ......................................................... 24444

Annex 10 Annexes to Case Study 3 Austria ...................................................... 25555

Annex 11 Annexes to Case study 4 UK ............................................................. 26363

Annex 12 Annexes to case study 5 the Netherlands ........................................ 26767

Annex 13 Overall methodological framework for the study .................................. 2711

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Executive Summary 10 core findings

1. Non-active EU migrants represent a very small share of the total population ineach Member State. They account for between 0.7% and 1.0% of the overall EU

population. A few notable exceptions are Belgium (3%), Cyprus (4.1%), Ireland (3%)and Luxembourg (13.9%). The vast majority of non-active intra-EU migrants reside inEU-151 countries (approx. 98%). This reflects the overall pattern of intra-EU migration.

2. Overall intra-EU migration has increased over the past decade ; according to EU-LFS estimates, the total number of intra-EU migrants aged 15 and above has increasedfrom 1.3% to 2.6% of total EU-27

2population between 2003 and 2012. The number

of intra-EU migrants being non-active has al