Can Catastrophic Long-Term Care Insurance Policies Increase Private Insurance Coverage and Reduce Medicaid Expenditure?

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Guoxuan Ma ◽  
Wei Sun
Keyword(s):  
Long Term Care ◽  
Private Insurance ◽  
Insurance Coverage ◽  
Purchase Decisions ◽  
Term Care ◽  
Middle Income ◽  
Insurance Policies ◽  
Long Term Care Insurance ◽  
Care Costs

Abstract Using an inter-temporal optimization model of long-term care insurance purchase decisions, we evaluate catastrophic long-term care insurance policies that cover the tail risk of long-term care costs at affordable premiums. Under our baseline model, we show theoretically that introducing catastrophic policies will induce 11 percent of middle-income men and 3 percent of middle-income women to initiate private insurance coverage. As a result, Medicaid costs will be reduced by 0.20 percent and 0.19 percent for men and women, respectively.

scholarly journals Insuring Long-Term Care in the United States

2011 ◽  
Vol 25 (4) ◽  
pp. 119-142 ◽  
Author(s):  
Jeffrey R Brown ◽  
Amy Finkelstein
Keyword(s):  
United States ◽  
Long Term Care ◽  
Private Insurance ◽  
Insurance Coverage ◽  
The Elderly ◽  
The United States ◽  
Term Care ◽  
Variable Nature ◽  
Long Term Care Insurance

Long-term care expenditures constitute one of the largest uninsured financial risks facing the elderly in the United States and thus play a central role in determining the retirement security of elderly Americans. In this essay, we begin by providing some background on the nature and extent of long-term care expenditures and insurance against those expenditures, emphasizing in particular the large and variable nature of the expenditures and the extreme paucity of private insurance coverage. We then provide some detail on the nature of the private long-term care insurance market and the available evidence on the reasons for its small size, including private market imperfections and factors that limit the demand for such insurance. We highlight how the availability of public long-term care insurance through Medicaid is an important factor suppressing the market for private long-term care insurance. In the final section, we describe and discuss recent long-term care insurance public policy initiatives at both the state and federal level.

scholarly journals Review on Pricing Models for Long-term Care Insurance

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Muhammad Syakir Asrulsani ◽  
Mazlynda Md Yusuf
Keyword(s):  
Activities Of Daily Living ◽  
Daily Living ◽  
Long Term Care ◽  
Financial Burden ◽  
Term Care ◽  
Protection Mechanism ◽  
Long Term Care Insurance ◽  
Risk Protection ◽  
Care Costs

Funding for long-term care costs among elderly people is a critical matter, especially due to high costs and an unexpected length of time. Placement for long-term care that is funded under Jabatan Kebajikan Masyarakat (JKM) is very limited, hence, the next option is through private nursing homes. However, the cost could be up to RM 2,000 a month for each person. Therefore, Long- Term Care Insurance is an alternative to fund for Long-Term Care costs as it is expected to reduce financial burden during old age. It is a risk protection mechanism for an insured that needs health and financial protection when an individual is unable to do activities of daily living (ADL) or supports in instrumental activities of daily living (IADL). This paper reviews three models that have been used in pricing long-term care insurance. All three models use the equivalent principle of premium to price the insurance policy. However, the probability and assumptions used for each model differ, depending on the insured's needs and profile.

Private Long-Term Care Insurance and State Tax Incentives

2009 ◽  
Vol 46 (3) ◽  
pp. 305-321 ◽  
Author(s):  
David G. Stevenson ◽  
Richard G. Frank ◽  
Jocelyn Tau
Keyword(s):  
Long Term Care ◽  
Private Insurance ◽  
Tax Incentives ◽  
National Data ◽  
Term Care ◽  
State Tax ◽  
Long Term Care Insurance

To increase the role of private insurance in financing long-term care, tax incentives for long-term care insurance have been implemented at both the federal and state levels. To date, there has been surprisingly little study of these initiatives. Using a panel of national data, we find that market take-up for long-term care insurance increased over the last decade, but state tax incentives were responsible for only a small portion of this growth. Ultimately, the modest ability of state tax incentives to lower premiums implies that they should be viewed as a small piece of the long-term care financing puzzle.

Long-Term Care

2018 ◽  
Author(s):  
Pierre Pestieau ◽  
Mathieu Lefebvre
Keyword(s):  
Social Insurance ◽  
Long Term Care ◽  
Private Insurance ◽  
Care Needs ◽  
Term Care ◽  
The Family ◽  
Two Factors ◽  
Long Term Care Insurance

This chapter is concerned with the rise in long-term care needs. Long-term care concerns individuals who are no longer able to carry out basic daily activities. Most of the care is currently provided by informal caregivers, mainly the family, while the role of formal care provided by the state or the market remains small. The chapter explains, however, why informal care is expected to decline and analyses the low private insurance development, the so-called long-term care insurance puzzle. These two factors, the decreasing role of the family and a thin insurance market, plead for the development of a full fledge social insurance for long-term care. The chapter then looks at the optimal design of such an insurance.

scholarly journals How Can Adult Children Influence Parents’ Long-Term Care Insurance Purchase Decisions?

2014 ◽  
Vol 57 (2) ◽  
pp. 292-299 ◽  
Author(s):  
Nina R. Sperber ◽  
Corrine I. Voils ◽  
Norma B. Coe ◽  
R. Tamara Konetzka ◽  
Jillian Boles ◽  
...  
Keyword(s):  
Adult Children ◽  
Long Term Care ◽  
Purchase Decisions ◽  
Term Care ◽  
Long Term Care Insurance

scholarly journals Health-economic evaluation of collaborative orthogeriatric care for patients with a hip fracture in Germany: a retrospective cohort study using health and long-term care insurance claims data

2021 ◽  
Author(s):  
Claudia Schulz ◽  
Gisela Büchele ◽  
Raphael S. Peter ◽  
Dietrich Rothenbacher ◽  
Christian Brettschneider ◽  
...  
Keyword(s):  
Cost Effectiveness ◽  
Hip Fracture ◽  
Societal Perspective ◽  
Retrospective Cohort ◽  
Standard Care ◽  
Long Term Care ◽  
Term Care ◽  
Long Term Care Insurance ◽  
Care Costs

Abstract Background Evidence suggests benefits of orthogeriatric co-management (OGCM) for hip fracture patients. Yet, evidence on cost-effectiveness is limited and based on small datasets. The aim of our study was to conduct an economic evaluation of the German OGCM for geriatric hip fracture patients. Methods This retrospective cohort study was based on German health and long-term care insurance data. Individuals were 80 years and older, sustained a hip fracture in 2014, and were treated in hospitals providing OGCM (OGCM group) or standard care (control group). Health care costs from payer and societal perspective, life years gained (LYG) and cost-effectiveness were investigated within 1 year. We applied weighted gamma and two-part models, and entropy balancing to account for the lack of randomisation. We calculated incremental cost-effectiveness ratios (ICER) and employed the net-benefit approach to construct cost-effectiveness acceptability curves. Results 14,005 patients were treated in OGCM, and 10,512 in standard care hospitals. Total average health care costs per patient were higher in the OGCM group: €1181.53 (p < 0.001) from payer perspective, and €1408.21 (p < 0.001) from societal perspective. The ICER equalled €52,378.12/ LYG from payer and €75,703.44/ LYG from societal perspective. The probability for cost-effectiveness would be 95% if the willingness-to-pay was higher than €82,000/ LYG from payer, and €95,000/ LYG from societal perspective. Conclusion Survival improved in hospitals providing OGCM. Costs were found to increase, driven by inpatient and long-term care. The cost-effectiveness depends on the willingness-to-pay. The ICER is likely to improve with a longer follow-up.

scholarly journals Behavioral Biases and Long-Term Care Insurance: A Political Economy Approach

2013 ◽  
Vol 14 (2) ◽  
pp. 551-575 ◽  
Author(s):  
Philippe De Donder ◽  
Marie-Louise Leroux
Keyword(s):  
Long Term Care ◽  
Private Insurance ◽  
Majority Voting ◽  
Term Care ◽  
Behavioral Biases ◽  
The Social ◽  
Average Probability ◽  
Long Term Care Insurance ◽  
Political Economy Approach

Abstract We develop a model where individuals all have the same probability of becoming dependent and vote over the social long-term care insurance contribution rate before buying additional private insurance and saving. We study three types of behavioral biases, all having in common that agents under-weight their dependency probability when taking private decisions. Sophisticated procrastinators anticipate their mistake when voting, while optimistic and myopic agents have preferences that are consistent across choices. Optimists under-estimate their own probability of becoming dependent but know the average probability, while myopics underestimate both. Sophisticated procrastinators attain the first-best allocation, while myopics and optimists insure too little and save too much. Myopics and optimists more (resp., less) biased than the median are worse off (resp., better off), at the majority-voting equilibrium, when private insurance is available than when it is not.

scholarly journals Comparison of the Measurement of Long-Term Care Costs between China and Other Countries: A Systematic Review of the Last Decade

Healthcare ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 117 ◽  
Author(s):  
Qingjun Zeng ◽  
Qingqing Wang ◽  
Lu Zhang ◽  
Xiaocang Xu
Keyword(s):  
Systematic Review ◽  
Long Term Care ◽  
Academic Research ◽  
Care Providers ◽  
Term Care ◽  
Disabled Elderly ◽  
The Disabled ◽  
Long Term Care Insurance ◽  
Care Costs

Background: The rapid aging of populations in some countries has led to a growing number of the disabled elderly, creating a huge need for Long-Term Care (LTC) and meeting its costs, which is a heavy economic burden on the families of the disabled elderly and governments. Therefore, the measurement of Long-Term Care (LTC) costs has become an important basis for the government to formulate Long-Term Care (LTC) policies, and academic research on Long-Term Care (LTC) costs is also in the process of continuous development and deepening. Methods: This is a systematic review that aims to examine the evidence published in the last decade (2010–2019) regarding the comparison of the measurement of Long-Term Care (LTC) costs between China and other countries. Results: Eighteen Chinese studies and 17 other countries’ studies were included in this review. Most Chinese scholars estimated long-term care costs based on the degree of disability among the disabled elderly. However, the studies of European and American countries are more and more in-depth and comprehensive, and more detailed regarding the post-care cost of specific diseases, such as Parkinson’s disease, Alzheimer’s disease, and epilepsy. Conclusion: In future academic research, we should fully consider the human value of long-term care providers and further study the differences in the long-term care costs of different chronic diseases. In China’s future policymaking, according to the experience of Germany, Sweden, and other countries, it may be an effective way to develop private long-term care insurance and realize the effective complementarity between private long-term care insurance and public long-term care insurance (LTCI).

Sign in / Sign up

Export Citation Format

Share Document