Why is the market for long-term care insurance so small?

Journal of Public Economics

Volumn 91, Issue 10, 2007, Pages 1967-1991

  Brown, Jeffrey R ^a   Finkelstein, Amy ^b  

^a UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN   (United States)

^b MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Aging; Health care; Insurance; Long term care

Indexed keywords

EID: 55549102409     PISSN: 00472727     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jpubeco.2007.02.010     Document Type: Article

References (58)

1. Abt Associates. Financing Long-term Care for the Baby Boom Generation. HSRE Working Paper 8 (2001)
2. Akerlof G. The market for "lemons": quality, uncertainty and the market mechanism. Quarterly Journal of Economics 74 (1970) 488-500
3. American Council of Life Insurers (ACLI). Life Insurers Fact Book (2001), Washington, DC
4. Brown J.R., and Finkelstein A. Supply or Demand: Why is the Market for Long-term Care Insurance so Small?. NBER Working Paper 10782 (2004)
5. Brown J.R., and Finkelstein A. The Interaction of Public and Private Insurance: Medicaid and the Long-term Care Insurance Market. NBER Working Paper 10989 (2004)
6. Brown J.R., and Goolsbee A. Does the internet make markets more competitive? Evidence from the life insurance industry. Journal of Political Economy 110 3 (2002) 481-507
7. Brown J.R., and Orszag P. The political economy of government-issued survivor bonds. Journal of Risk and Insurance 73 4 (2006) 611-631
8. Chiappori, Pierre-Andre, Jullien, Bruno, Salanie, Bernard, Salanie, Francois, in press. Asymmetric Information in Insurance: General Testable Implications. Rand Journal of Economics.
9. Cohen M., and Weinrobe M. Tax Deductibility of Long-term Care Insurance Premiums (2000) HIAA, March
10. Cohen M. Private long-term care insurance: a look ahead. Journal of Aging and Health 15 1 (2003) 7-98
11. Congressional Budget Office (CBO). Projections on Expenditures for Long-term Care Services for the Elderly (1999), Government Printing Office, Washington, DC March
12. Congressional Budget Office (CBO). Financing Long-term Care for the Elderly (2004), Government Printing Office, Washington, DC April
13. Cutler, David, 1996. Why Don't Markets Insure Long-term Risk? Unpublished working paper. http://post.economics.harvard.edu/faculty/dcutler/papers/ltc_rev.pdf.
14. Cutler D. Health care and the public sector. In: Auerbach A., and Feldstein M. (Eds). Handbook of Public Economics (2002), Elsevier
15. Dahlby B., and West D.S. Price dispersion in an automobile insurance market. Journal of Political Economy 94 (1986) 418-438 (April)
16. Dick A., Garber A., and MaCurdy T. Forecasting nursing home utilization of elderly Americans. In: Wise D. (Ed). Studies in the Economics of Aging (1994)
17. Finkelstein A., and McGarry K. Multiple dimensions of private information: evidence from the long-term care insurance market. American Economic Review 96 4 (2006) 938-958 (September)
18. Finkelstein A., McGarry K., and Sufi A. Dynamic inefficiencies in insurance markets: evidence from long-term care insurance. American Economic Review Papers and Proceedings 95 (2005) 224-228
19. Finkelstein A., and Poterba J. Testing for adverse selection with 'unused observables'. NBER Working Paper 12112 (2006)
20. Friedberg L., and Webb A. Life is cheap: using mortality bonds to hedge aggregate mortality risk. NBER Working Paper 11984 (2006)
21. Froot K. Introduction. In: Froot K. (Ed). The Financing of Catastrophe Risk (1999), University of Chicago Press, Chicago
22. Health Insurance Association of America (HIAA). Who Buys LTC Insurance in 2000? Washington D.C. (2000)
23. Health Insurance Association of America (HIAA). LTC Insurance in 1997-1998 (2000) Washington D.C.
24. Igal H., and Lizzeri A. The role of commitment in dynamic contracts: evidence from life insurance. Quarterly Journal of Economics (2003) 299-327 (February)
25. Kofman M., and Thompson L. Consumer protection and long-term care insurance: predictability of premiums. Georgetown University Long-term Care Financing Project: Issue Brief, March (2004). http://ltc.georgetown.edu/pdfs/consumer.pdf http://ltc.georgetown.edu/pdfs/consumer.pdf
26. Kemper P., and Murtaugh C. Lifetime use of nursing home care. New England Journal of Medicine 324 (1991) 595-600
27. Kunreuther H. Disaster Insurance Protection: Public Policy Lessons (1978), Wiley, New York
28. Lakdawalla D., Bhattacharya J., and Goldman D. Are the young becoming more disabled?. Health Affairs 23 1 (2004) 168-176
29. Lakdawalla D., and Philipson T. The rise of old-age longevity and the market for long-term care. American Economic Review 92 1 (2002) 295-306
30. Lewis, Stephanie., Wilkin, John, Merlis, Mark, 2003. Regulation of Private Long-term Care Insurance: Implementation Experience and Key Issues. Prepared for The Kaiser Family Foundation, March. http://www.kff.org/insurance/loader.cfm?url=/commonspot/security/getfile.cfm&PageID=14371.
31. Life Insurance Marketing Research Association (LIMRA). Individual Long-term Care Insurance (2002)
32. Lutsky S., Alexcih L., and Foreman R. Long-term Care Insurance: An Assessment of States' Capacity to Review and Regulate Rates (2002), AARP Public Policy Institute, Washington, DC. http://research.aarp.org/il/2002_02_ltc.pdf http://research.aarp.org/il/2002_02_ltc.pdf
33. Manton K., and Gu X. Changes in the Prevalence of Chronic Disability in the United States Black and Nonblack Population Above Age 65 from 1982 to 1999. Proceedings of the National Academy of Sciences 98 11 (2001) 6354-6359 May
34. Manton K., Corder L., and Stallard E. Chronic Disability Trends in the Elderly United States Populations: 1982-1994. Proceedings of the National Academy of Sciences 94 (1997) 2593-2598 March
35. Merlis, Mark, 2003. Private Long-term Care Insurance: Who Should Buy It and What Should They Buy? Prepared for the Kaiser Family Foundation, March. http://www.kff.org/insurance/loader.cfm?url=/commonspot/security/getfile.cfm&PageID=14370.
36. MetLife Mature Market Institute. MetLife Market Survey of Nursing Home and Home Care Costs 2002 (2002)
37. MetLife Mature Market Institute. MetLife Survey of Assisted Living Costs 2002 (2002)
38. Mitchell O.S., Poterba J.M., Warshawsky M., and Brown J.R. New evidence on the money's worth of individual annuities. American Economic Review 89 (1999) 1299-1318 (December)
39. Mulvey J., and Li A. Long-term care financing: options for the future. Benefits Quarterly, Second Quarter (2002) 7-14
40. Murtaugh C., Kemper P., and Spillman B. Risky business: long-term care insurance underwriting. Inquiry 32 (1995) 284-371
41. Murtaugh C., Kemper P., Spillman B., and Carlso B. Amount, distribution, and timing of lifetime nursing home use. Medical Care 3 35 (1997) 204-218
42. National Association of Insurance Commissioners (NAIC). Executive Summary of Amendments to the Long-term Care Insurance Model Regulation (2002) January
43. National Association of Insurance Commissioners (NAIC). State Survey of Long-term Care Insurance Rating Practices and Consumer Disclosure Amendments (2002) September
44. National Center for Health Statistics. Health, United States, 2002 with Chartbook on Trends in the Health of Americans (2002) Hyattsville, Maryland
45. Newhouse J. Pricing the Priceless: A Health Care Conundrum (2002), MIT Press, Cambridge, MA
46. Norton E. Long-term Care. In: Culyer A.J., and Newhouse J.P. (Eds). Handbook of Health Economics vol. 1, ch 17 (2000), Elsevier Science
47. Pauly M. The rational nonpurchase of long-term-care insurance. Journal of Political Economy 98 1 (1990) 153-168
48. Robinson J. A Long-term Care Status Transition Model, Presented at the 1996 Bowles Symposium on the Old-Age Crisis: Actuarial Opportunities (1996), Georgia State University September
49. Robinson, James, 2002. A Long-term Care Status Transition Model. Mimeo, University of Wisconsin, Madison.
50. Rothschild M., and Stiglitz J. An essay on the economics of imperfect information. Quarterly Journal of Economics 90 (1976) 629-649 (November)
51. Stiglitz J., and Weiss A. Credit rationing in markets with imperfect information. American Economic Review 71 3 (1981) 393-410
52. Society of Actuaries, 2002. Long-term Care Experience Committee InterCompany Study 1984-1999. http://www.soa.org/sections/intercompany_study.pdf.
53. Stone J.L. Medicaid: eligibility for the aged and disabled (2002) CRS Report for Congress RL31413 (July 5)
54. Tillinghast-Towers Perrin. Pricing Methodology Survey (2002) August
55. United States Congress, Committee on Ways and Means. Green Book 2000: Background Material on Programs under the Jurisdiction of the Committee on Ways and Means (2000), GPO, Washington DC
56. Weiss Ratings Inc. Weiss Ratings' Consumer Guide to Long-term Care Insurance (2002), Palm Beach Gardens, Fl.
57. Wiener J., Illston L.H., and Hanley R. Sharing the Burden: Strategies for Public and Private Long-term Care Insurance (1994), The Brookings Institution, Washington DC
58. Wiener J., Tilly J., and Goldenson S. Federal and State Initiatives to Jump Start the Market for Private Long-term Care Insurance. Elder Law Journal 8 1 (2000) 57-99