Filed Under:Life Insurance, Life Settlements

Researchers: LTC Insurance Keeps Some in Homes

Private long term care (LTC) insurance helps insureds with moderate disabilities stay in their homes longer and does not appear to crowd out informal caregiving.

Yong Li, a researcher at Competitive Health Analytics Inc., Humana Inc., Louisville, Ky. (NYSE:HUM), and Gail Jensen, a gerontology and economics professor at Wayne State University, have come to that conclusion in a paper published in Inquiry, an academic journal that focuses on health care organization and finance issues.

The researchers analyzed the effects of private LTC insurance on use of LTC services by analyzing survey data from 2002 to 2008 from the University of Michigan's Health and Retirement Study

Up till now, few other researchers have conducted formal studies on that topic, Li and Jensen report.

One advantage of using the Health and Retirement Study data is that the researchers in charge of that project use followup question to identify survey participants who believe they have LTC insurance but do not actually have it: Li and Jensen say confused consumers make typical LTC insurance penetration figures about 50% higher than they ought to be.

Owning private LTC insurance does appear to increase that insureds who are unable to perform two or

more activities of daily living (ADLs) will enter a nursing home, the researchers say.

Having LTC coverage appears to increase likelihood that those seriously disabled insured will enter a nursing home by 17% to 39%, the researchers say.

But having LTC insurance seems to have a statistically insignificant effect on the use of informal care from friends, neighbors and relatives, the researchers say.

The researchers say the same is true of home care.

In the past, some LTC insurance market watchers have suggested that relatively healthy older LTC insurance insureds might view tapping home care benefits as a way to pay for maid service.

But LTC policy insureds did not seem to be any more likely to use home care than other, similar survey participants with a moderate level of disability, and the researchers add that they found know evidence of antiselection.

After accounting for variables such as income, education level and access to adult children, LTC insurance holders seemed to be no more likely to use home care than comparable consumers without LTC coverage, the researchers say.

Other LTC insurance coverage from National Underwriter Life & Health:

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting


Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.