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Forum for Health Economics & Policy

Editor-in-Chief: Goldman, Dana / Romley, John


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Demand-Side Factors Associated with the Purchase of Long-Term Care Insurance

Mark A. Unruh
  • Corresponding author
  • Division of Health Policy and Economics, Department of Healthcare Policy and Research, Weill Cornell Medical College, 402 E. 67th Street, New York, NY 10065, USA
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/ David G. Stevenson
  • Department of Health Policy, Vanderbilt University, Village at Vanderbilt, Suite 2100, 1500 21st Avenue South, Nashville, TN 37212, USA
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/ Richard G. Frank
  • Margaret T. Morris Professor of Health Economics, Department of Health Care Policy, Harvard Medical School, 180 Longwood Avenue, Boston, MA 02115-5899, USA
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/ Marc A. Cohen
  • Chief Research and Development Officer, LifePlans, Inc., 51 Sawyer Road, Suite 340, Waltham, MA 02453, USA
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/ David C. Grabowski
  • Department of Health Care Policy, Harvard Medical School, 180 Longwood Avenue, Boston, MA 02115-5899, USA
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Published Online: 2015-05-12 | DOI: https://doi.org/10.1515/fhep-2014-0020

Abstract

Demand-side barriers are known to be important toward explaining the limited purchase of private long-term care insurance (LTCI). In this study, we examine several factors associated with the demand for LTCI including the availability of less costly substitutes (e.g., Medicaid, family), consumer information, and risk perception. Using buyer surveys from 2000, 2005, and 2010, our results suggest that, among individuals not eliminated through medical underwriting, consumer risk perception and the presence of lower cost, imperfect substitutes are strongly associated with the limited purchase of LTCI. These factors were also predictive of the generosity of coverage purchased. If policymakers seek to stimulate demand for LTCI, new public policies might include Medicaid reform, integrating LTCI with Medicare Advantage plans, enhanced LTCI offerings through employers, and targeted informational campaigns.

Keywords: health care financing; insurance; long-term care

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About the article

Corresponding author: Mark A. Unruh, PhD, Assistant Professor, Division of Health Policy and Economics, Department of Healthcare Policy and Research, Weill Cornell Medical College, 402 E. 67th Street, New York, NY 10065, USA, Phone: +(646) 962-8061, e-mail: mau2006@med.cornell.edu


Published Online: 2015-05-12

Published in Print: 2016-06-01


Citation Information: Forum for Health Economics and Policy, Volume 19, Issue 1, Pages 23–43, ISSN (Online) 1558-9544, ISSN (Print) 2194-6191, DOI: https://doi.org/10.1515/fhep-2014-0020.

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