title: Means-tested public support and the interaction between long-term care insurance and informal care.
abstract: This paper investigates theoretically how the structure of means-tested public long-term care (LTC) support influences the relationship between LTC insurance and informal care. Three types of public support encountered in various means-tested LTC schemes are examined. First, the level to be considered for means-testing only takes into account the level of wealth of the recipient without considering the cost of LTC or the possible insurance benefits. Second, the public support also considers the LTC needs of the recipient. Third, the means-test structure takes into consideration insurance benefits as well. Our results show that the optimal levels of insurance and informal care as well as their relationship are strongly influenced by the ways means-tested public support for LTC is structured, which have important implications in terms of public policy for the financing of LTC needs.
authors.affiliation: University of Poitiers, CRIEF, 2, Rue Jean Carbonnier, 86022, Poitiers, France.
authors.forename: Jean-Marc
authors.initials: JM
authors.lastname: Bascans
authors.affiliation: Haute Ecole de Gestion de Genève, University of Applied Sciences Western Switzerland (HES-SO), Rue de la Tambourine 17, 1227, Carouge, Switzerland.
authors.forename: Christophe
authors.initials: C
authors.lastname: Courbage
authors.affiliation: University of Poitiers, CRIEF, 2, Rue Jean Carbonnier, 86022, Poitiers, France. cornel.oros@univ-poitiers.fr.|University of Orléans, LEO, Rue de Blois, 45067, Orléans, France. cornel.oros@univ-poitiers.fr.
authors.forename: Cornel
authors.initials: C
authors.lastname: Oros
keywords: Informal care; Long-term care; Long-term care insurance; Means testing