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Centre for Policy on Ageing | |
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| Why don't people buy long-term care insurance? | | Author(s) | Anne Theisen Cramer, Gail A Jensen |
| Journal title | Journals of Gerontology: Series B, Psychological Sciences and Social Sciences, vol 61B, no 4, July 2006 |
| Pages | pp S185-S193 |
| Source | http://www.geron.org |
| Keywords | Health insurance ; Usage [services] ; Social surveys ; United States of America. |
| Annotation | Determinants of an individual's decision to purchase long-term care (LTC) insurance is assessed, the focus being on the decision to purchase a new policy as opposed to renewing an existing policy. This study gave special consideration to the role of policy price, the savings associated with buying a policy now as opposed to later, and the purchaser's education and income. The authors estimated logistic regression using data from the 2002 US Health and Retirement Survey (HRS) to model consumer decisions to purchase LTC insurance. Price was a significant determinant. The demand for cover, however, was price inelastic, with elasticities ranging from -0.23 to -0.87 depending on the specification of the model. The purchaser's education level and income were also important. The findings that demand is very price inelastic suggests that state initiatives that effectively subsidise premiums as a way of stimulating purchases are likely to meet with very limited success in the present financial environment. (RH). |
| Accession Number | CPA-070504224 A |
| Classmark | WPG: QLD: 3F: 7T |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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