title: Determinants of Private Long-Term Care Insurance Purchase in Response to the Partnership Program.
abstract: OBJECTIVE
  To assess three possible determinants of individuals' response in their private insurance purchases to the availability of the Partnership for Long-Term Care (PLTC) insurance program: bequest motives, financial literacy, and program awareness.
  
  
  METHODS
  The health and retirement study (HRS) merged with data on states' implementation of the PLTC program.
  
  
  METHODS
  Individual-level decision on private long-term care insurance is regressed on whether the PLTC program is being implemented for a given state-year, asset dummies, policy determinant variable, two-way and three-way interactions of these variables, and other controls, using fixed effects panel regression.
  
  
  METHODS
  Analysis used a sample between 50 and 69 years of age from 2002 to 2010, resulting in 12,695 unique individuals with a total of 39,151 observations.
  
  
  RESULTS
  We find mild evidence that intent to bequest influences individual purchase of insurance. We also find that program awareness is necessary for response, while financial literacy notably increases responsiveness.
  
  
  CONCLUSIONS
  Increasing response to the PLTC program among the middle class (the stated target group) requires increased efforts to create awareness of the program's existence and increased education about the program's benefits, and more generally, about long-term care risks and needs.
authors: Department of Business Economics and Public Policy, Kelley School of Business, Indiana University, Bloomington, IN.
authors: Haizhen
authors: H
authors: Lin
authors: Department of Business Economics and Public Policy, Kelley School of Business, Indiana University, Bloomington, IN.
authors: Jeffrey T
authors: JT
authors: Prince
mesh_terms: D000368:Aged; D001364:Awareness; D003365:Costs and Cost Analysis; D003657:Decision Making; D005260:Female; D006801:Humans; D007353:Insurance, Long-Term Care / Q000191:economics* / Q000706:statistics & numerical data*; D008297:Male; D008875:Middle Aged; D012959:Socioeconomic Factors
keywords: Partnership for long-term care insurance program; determinants of policy response; private long-term care insurance