Long-Term Care Insurance Puzzle

Abstract

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Uncertain altruism and the provision of long term care

“…9 In this case, there will be an interior solution for and characterized by 0 ( ( ; ) + ) = 1 1 1 (13) 7 The condition is satised at = 1 and by continuity in the neighborhood of = 1 8 One explanatory reason mentioned for the LTC insurance puzzle is family solidarity (as well as the more well-known annuity puzzle); see Pestieau and Ponthière (2011). Our result suggests that even uncertain family solidarity may explain the puzzle.…”

“…The consumption levels provided through one's own savings, and help from altruistic children, are su cient (albeit, if 1, ex post there will be some people with "insu cient" means). 8 The second outcome occurs if…”

L'Assurance autonomie au Québec : une réforme inachevée

“…Trois options sont possibles : les économies individuelles, des assurances privées ou une assurance publique universelle. Plusieurs études et rapports ont montré que les économies individuelles et les assurances privées ne peuvent fournir une réponse adéquate à ce financement (Barr 2010;Pestieau et Ponthière 2010;Grignon et Bernier 2012).…”

Funding and Providing Aged Care: Lessons from the Last Decade

“…After all, the fundamental problem is the exposure of individuals to what are relatively low‐risk, but high‐consequence, adverse health events. However, the international experience suggests that there are substantial obstacles to the voluntary take‐up of aged‐care insurance (Pauly 1990; Meier 1999; Leibman and Zeckhauser 2008; Curry et al 2009; Pestieau and Ponthière 2010). For example, to be viable, such insurance must be entered into many years before the events which it covers, but most people, especially the young, would find it extremely difficult to assess the complex risks at issue, much less to sensibly value them, and for so long as the public system provides a safety net, the incentive to acquire individual coverage would be slight.…”