The Impact of the Partnership Long-Term Care Insurance Program on Private Coverage and Medicaid Expenditures
2013, Journal of Health Economics
Haizhen Lin, Jeffrey Prince
We examine the impact of U.S. states’ adoption of the partnership long-term care (LTC) insurance program on households’ purchases of private coverage. This program increases benefits of privately insuring via a higher asset threshold for Medicaid eligibility for LTC coverage, and targets middle-class households. We find the program generates few new purchases of LTC insurance, and those it generates are almost entirely by wealthy individuals, as predicted by Medicaid crowd-out. Further analysis suggests that awareness levels of the program, and possibly bequest intentions, also effectively predict response rates, but Medicaid crowd-out persists. We provide an estimate of expected Medicaid savings/costs.
Lin, Haizhen, and Jeffrey Prince (2013), "The Impact of the Partnership Long-Term Care Insurance Program on Private Coverage and Medicaid Expenditures," Journal of Health Economics, Vol. 32, No. 6, pp. 1205-1213.