Rising wealth means that older people are more likely to self-insure rather than buy long-term care insurance

When older adults need paid long-term care, most rely on their own assets—especially housing and financial assets—unless they hold private long-term care insurance or qualify for Medicaid. In new research Joan Costa-Font, Richard Frank and Nilesh Raut find that unexpected increases in wealth, either through rising home prices or stock market gains, mean that individuals are significantly less likely to buy long-term care insurance and are more likely to self-insure. They also determine that these wealth changes have little impact on Medicaid eligibility.