The Next Frontier of American Health Insurance: A Panel Analysis of the Long-Term Care Insurance Market

Poster Number

2

Lead Author Major

Economics

Format

Poster Presentation

Faculty Mentor Name

Michelle Amaral

Faculty Mentor Department

Economics

Abstract/Artist Statement

For at least 25 years, the rate of ownership of long-term care insurance (LTCI) has remained steadily low. This trend has continued despite Americans living longer, and thus requiring more years of long-term care services. The purpose of this research is to merge two schools of thought that attempt to explain the stable, but low, ownership rate of LTCI policies. These two schools fall into factors of cost and family/experience. Using the University of Michigan’s Health and Retirement Study, a logistic panel regression was created to measure the relative impact of both cost and non-cost variables. In the end, the results seem to indicate that family life and experiences are a stronger indicator of LTCI ownership than the individual's financial situation.

Location

DeRosa University Center, Ballroom

Start Date

30-4-2016 10:00 AM

End Date

30-4-2016 12:00 PM

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Apr 30th, 10:00 AM Apr 30th, 12:00 PM

The Next Frontier of American Health Insurance: A Panel Analysis of the Long-Term Care Insurance Market

DeRosa University Center, Ballroom

For at least 25 years, the rate of ownership of long-term care insurance (LTCI) has remained steadily low. This trend has continued despite Americans living longer, and thus requiring more years of long-term care services. The purpose of this research is to merge two schools of thought that attempt to explain the stable, but low, ownership rate of LTCI policies. These two schools fall into factors of cost and family/experience. Using the University of Michigan’s Health and Retirement Study, a logistic panel regression was created to measure the relative impact of both cost and non-cost variables. In the end, the results seem to indicate that family life and experiences are a stronger indicator of LTCI ownership than the individual's financial situation.