Private Long-Term Care Insurance

The author’s objective is to summarize and synthesize what is known about the private long-term care insurance market and its impact on public expenditures, policy holders, their families, and providers. Primary data were compiled from national studies and published and nonpublished information from the long-term care insurance industry. The study design was the review and analysis of empirical data. Data were collected from in-person, mail, and telephone interviews, as well as from a review of the literature. The market is growing rapidly in part due to the vast improvements in product design and to federal and state public policies. Growth in the market should result in modest reductions in public long-term care expenditures. Most claimants are satisfied with their policy, but many still do not feel that their needs are being met. Service delivery and provider issues are critical to making money work for disabled persons and insurers will be increasingly called on to help address this issue. The market for long-term care insurance will continue to grow. Over time, this insurance will likely play a more meaningful role in meeting the needs of disabled elders and their families.