Impact of Private Long-term Care Insurance on Demand for Care: Setting and Intensity

How does long-term care (LTC) insurance affect decisions about the setting of care and the level of service received among elders with disabilities? The researchers answered the following research questions: 1) How does LTC insurance affect the probability of receiving care in a residential setting compared with the probability of receiving care in a community setting? 2) How does LTC insurance coverage affect the amount of formal and informal care used? Through their analyses, the researchers estimated the future expenditures for LTC, future service capacity needs, and future burdens on families providing informal care. The objective of the project was to provide policymakers with better information as they consider decisions that would expand the use of LTC insurance and as they think about the future demand for LTC services.