Expanding state private insurance partnership programs can help reduce public spending on long term care

Americans are getting older, and the cost of caring for this aging population is continuing to rise. While health insurance in the US is common, even after five decades of development, the market for long-term care (LTC) insurance has failed to expand significantly. One major barrier is that individuals often rely on self-insurance or Medicaid, which requires people to spend down their assets to qualify. Joan Costa-Font and Nilesh Raut examine the effects of LTC partnership contracts which have been introduced by some US states. They find that the rollout of the partnership program have increased LTC insurance uptake by 14 to 17 percent and reduced Medicaid spending.