Long-term Care Social Insurance. How to Avoid Big Losses?

Justina Klimaviciute and Pierre Pestieau

No 2016016, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Long-term care (LTC) needs are expected to rapidly increase in the next decades and at the same time the main provider of LTC, namely the family is stalling. This calls for more involvement of the state that today covers less than 20% of these needs and most often in an inconsistent way. Besides the need to help the poor dependent, there is a mounting concern in the middle class that a number of dependent people are incurring costs that could force them to sell all their assets. In this paper we study the design of a social insurance that meets this concern. Following Arrow (1963), we suggest a policy that is characterized by complete insurance above a deductible amount.

Keywords: capped spending; Arrowís theorem; long-term care insurance; optimal taxation (search for similar items in EconPapers)
JEL-codes: H21 I13 J14 (search for similar items in EconPapers)
Date: 2016-02-01
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Long-term care social insurance: How to avoid big losses? (2018)
Working Paper: Long-term care social insurance: how to avoid big losses? (2018)
Working Paper: Long-term care social insurance. How to avoid big losses? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2016016

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