Long-term care partnership effects on Medicaid and private insurance

Costa-Font, Joan ORCID: 0000-0001-7174-7919 and Raut, Nilesh ORCID: 0000-0002-2611-8432 (2025) Long-term care partnership effects on Medicaid and private insurance. Health Economics. ISSN 1057-9230

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Abstract

We examine the impact of the Long-Term Care Insurance Partnership (LTCIP) program—a collaborative initiative between the state-level Medicaid programs and private health insurance companies designed to promote private long-term care insurance (LTCI)—on insurance ownership and Medicaid utilization. We draw on individual-level longitudinal data and employ a difference-in-differences (DD) design adjusted for the staggered implementation of the program between 2005 and 2018. Our results suggest that the rollout of the LTCIP program led to a 1.54 percentage point (pp) (14.7%) increase in LTCI ownership and a 0.82 pp (13.3%) reduction in Medicaid uptake. Our estimates suggest that these combined effects led to an approximate average cost saving of $74 per 65-year-old participant. These findings are explained by a certain degree of substitution between LTCIP and traditional LTCI contracts, ultimately postponing the use of Medicaid benefits.

Item Type:	Article
Additional Information:	© 2025 The Author(s)
Divisions:	Health Policy LSE Health
Subjects:	R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine H Social Sciences > HB Economic Theory
JEL classification:	I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy; Regulation; Public Health H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies
Date Deposited:	28 Jan 2025 09:24
Last Modified:	02 Apr 2025 16:03
URI:	http://eprints.lse.ac.uk/id/eprint/127078

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