Preferences for in-kind and in-cash home care insurance

Jochem de Bresser, Marike Knoef and Raun van Ooijen

Journal of Health Economics, 2022, vol. 84, issue C

Abstract: We study preferences for different types of home care insurance using a discrete choice experiment. We consider domestic, personal, and social care, a home care annuity, and a lump-sum for home adaptations. To understand variation in preferences, we relate willingness to pay to personal circumstances, preferences, and expectations. We find that the majority value in-kind and in-cash insurance above the actuarial premium. While most respondents value coverage for basic levels of support, we find diminishing marginal utility for higher levels of support. For in-kind care, willingness to pay is positively associated with respondent characteristics: being single, household income, home ownership, risk aversion, low bequest motives, expected length of home care use, expected expenditures when in need of care, and low expected availability of informal care. In contrast, in-cash support is valued regardless of respondent characteristics, possibly because its inherent flexibility. These results contribute to the design of insurance schemes for home care.

Keywords: Long-term care insurance; Home care; Willingness to pay; Discrete choice experiment; Saving motives; Health expectations (search for similar items in EconPapers)
JEL-codes: D14 I13 J14 J18 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:84:y:2022:i:c:s0167629622000455

DOI: 10.1016/j.jhealeco.2022.102626

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