EconPapers    
Economics at your fingertips  
 

When the affordable has no value, and the valuable is unaffordable: The U.S. market for long-term care insurance and the role of Medicaid

Markus Fels

No 84, Working Paper Series in Economics from Karlsruhe Institute of Technology (KIT), Department of Economics and Management

Abstract: I consider the popular argument of Medicaid crowding out demand for private long-term care insurance. I show that this argument rests on a wrong counterfactual comparison. Furthermore, I question the welfare-decreasing impact of Medicaid as it neglects a large value of the program in providing access to care. I show that private insurance is unable to offer a similar value. I posit that the low take-up of private insurance is due to a dilemma prevalent in - but not exclusive to - the market for long term care insurance: a dilemma between access and affordability. Several empirical patterns in insurance uptake and lapsing behavior can be explained by considering the issue of limited affordability.

Keywords: Aging; Insurance; Long term Care; Medicaid (search for similar items in EconPapers)
JEL-codes: G22 I11 I38 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-hea and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/128642/1/84862033X.pdf (application/pdf)

Related works:
Journal Article: On the value of Medicaid in providing access to long‐term care (2020) Downloads
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:zbw:kitwps:84

Access Statistics for this paper

More papers in Working Paper Series in Economics from Karlsruhe Institute of Technology (KIT), Department of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2022-07-04
Handle: RePEc:zbw:kitwps:84