title: Private long-term care insurance. Simulations of a potential market.
abstract: Long-term care is now the most common cause of catastrophic illness costs for the elderly. Although acute care health insurance represents a mature market, private long-term care insurance is in its infancy and poised for development. This study presents a comparative analysis of simulation data, generated from the Brookings-ICF Long-Term Care Financing Model, for five alternative private long-term care insurance models. The simulation results indicate 1) the potential market for private long-term care insurance is substantial, 2) moderately comprehensive long-term care policies are affordable by a significant minority of the elderly, 3) policies are considerably more affordable to those under age 65, and 4) long-term care insurance has somewhat less potential to pay for nursing home costs for high risk groups than for other elderly.
authors.affiliation: Department of Economics, University of North Texas, Denton 76203-3408.
authors.forename: R M
authors.initials: RM
authors.lastname: Rubin
authors.forename: J M
authors.initials: JM
authors.lastname: Wiener
authors.forename: M R
authors.initials: MR
authors.lastname: Meiners
mesh_terms: D000328:Adult; D000368:Aged; D003362:Cost-Benefit Analysis; D006801:Humans; D007182:Income; D007353:Insurance, Long-Term Care / Q000191:economics*; D008484:Medicaid / Q000191:economics; D006278:Medicare / Q000191:economics; D008875:Middle Aged; D009010:Monte Carlo Method; D009735:Nursing Homes / Q000191:economics*; D014481:United States