Developing public-private long term care insurance partnerships.

Area of Science:

• Health Economics
• Gerontology
• Public Policy

Background:

• Long term care is increasingly recognized as a significant insurable risk for the elderly.
• Current financing models often require individuals to deplete personal resources before qualifying for Medicaid.
• There is a growing need for alternative financing mechanisms for nursing home, home health, and community-based care.

Purpose of the Study:

• To examine the financing and delivery of care for elderly citizens.
• To analyze the impact of emerging long term care insurance options.
• To explore public policy implications and market development for long term care insurance.

Main Methods:

• Analysis of insurance market trends for long term care.
• Review of public policy initiatives supporting long term care insurance.
• Examination of potential benefits for government payers, particularly Medicaid.

Main Results:

• Long term care insurance provides consumers a more reasonable way to pay for care needs.
• Private insurance can potentially reduce Medicaid's role for middle-income elderly by mitigating resource depletion.
• Government payers may benefit from reduced Medicaid expenditures.

Conclusions:

• The emergence of long term care insurance stimulates public policy interest in market development.
• States are actively seeking ways to make long term care products appealing and affordable.
• Broadening the market for long term care insurance can assist those at risk of needing Medicaid assistance.