Long-term care insurance policy dropping in the U.S. from 1996 to 2000: Evidence and implications for long-term care financing

Paul E. McNamara, Nayoung Lee

Research output: Contribution to journalReview articlepeer-review

Abstract

While the market for private long-term care insurance in the U.S. has grown dramatically, consumer advocates have argued for increased regulatory attention and for broadened consumer education programs concerning long-term care insurance. We analyse Health and Retirement Survey data from 1996, 1998, and 2000 using a zero-inflated negative binomial regression model of the counts of consecutive periods of long-term care insurance coverage. We and that while a significant proportion of Americans over the age of 50 purchase long-term care insurance, many of these purchasers drop their coverage within a five-year period. This finding raises questions for long-term care insurance researchers and it contains implications for market regulators, public policy makers interested in financing long-term care, as well as for insurance companies and consumer advocates.

Original languageEnglish (US)
Pages (from-to)640-651
Number of pages12
JournalGeneva Papers on Risk and Insurance: Issues and Practice
Volume29
Issue number4
DOIs
StatePublished - Oct 2004

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting(all)
  • Finance
  • Economics and Econometrics

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