When the affordable has no value, and the valuable is unaffordable: The U.S. market for longterm care insurance and the role of Medicaid / by Markus Fels
Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: Working paper series in economics ; no. 84Publisher: Karlsruhe : Karlsruher Institut für Technologie, February 2016Description: 1 Online-Ressource (23 Seiten)Subject(s): Genre/Form: DOI: DOI: 10.5445/IR/1000055418Online resources: Summary: 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.PPN: PPN: 84862033XNo physical items for this record