Dynamic Effects of Long-Term Care Insurance on Healthcare Expenditures: Evidence from South Korea

Honsoo Kim, Soojin Kim, Wonshik Kim and Kyung Hoon Yang
Additional contact information
Honsoo Kim: Hansun Foundation
Wonshik Kim: Georgia State University
Kyung Hoon Yang: University of Wisconsin, La Crosse

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: Long-term care expenses pose a large financial risk to the elderly. In 2008, South Korea introduced a public long-term care insurance (LTCI) program for individuals older than 65. We study the dynamic effects of the LTCI on various healthcare expenditures. We find that after the implementation of the LTCI, average prescription drug and outpatient expenditures of the elderly increased. Dynamically, we observe that the growth in these expenditures moderates. We also find suggestive evidence that after the LTCI program, the elderly utilize LTC hospitals, substituting out of inpatient hospital services. These findings underscore the importance of understanding the long-term effects of LTCI on health and healthcare expenditures of the elderly and the need to account for such interactions in policy design.

Pages: 21 pages
Date: 2022-12
New Economics Papers: this item is included in nep-age and nep-hea
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://icepp.gsu.edu/files/2023/01/paper2209.pdf (application/pdf)

Related works:
Journal Article: Dynamic Effects of Long-Term Care Insurance on Healthcare Expenditures: Evidence from South Korea (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper2209

Access Statistics for this paper

More papers in International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University Contact information at EDIRC.
Bibliographic data for series maintained by Paul Benson ().