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Long‐Term Care Insurance Purchase Patterns
Author(s) -
Doerpinghaus Helen I.,
Gustavson Sandra G.
Publication year - 2002
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/1098-1616.00008
Subject(s) - long term care insurance , medicaid , business , population , long term care , actuarial science , demographic economics , public economics , health care , economics , medicine , economic growth , environmental health , nursing
Given the aging population and high cost of long‐term care, many Americans are concerned about financing long‐term care services. Despite this concern, private long‐term care insurance policy sales have experienced slow growth. On average only about 7 percent of the population aged 65 and older has long‐term care insurance, but this percentage varies greatly across the states. In this study we test hypothesized relationships between purchase of long‐term care insurance and various explanatory factors. We provide evidence that state Medicaid nursing home expenditure levels and the relative sizes of the elderly population and the nursing home population are significant explanatory factors of purchase rates. We find no evidence that public–private partnership regulation, the quality of available facilities, or agent marketing controls affect purchase. Findings of the study are useful to insurers, legislators, regulators, and others involved in the public policy debate about financing long‐term care.