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Long-term care partnerships: are they fit for purpose?

Bergquist, Savannah, Costa-Font, Joan and Swartz, Katherine (2018) Long-term care partnerships: are they fit for purpose? Journal of the Economics of Ageing, 12. pp. 151-158. ISSN 2212-828X

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Identification Number: 10.1016/j.jeoa.2018.03.006


Long-term care partnership (LTCP) programs were designed to both encourage middle-income individuals to purchase private long-term care insurance, and defer the time when an individual would become eligible for Medicaid to pay her long term care services and supports (LTSS). This paper exploits the timing of state Partnership implementation (including four pilot states) to evaluate the program’s effects on new yearly insurance applications and contract uptake. We draw upon data from the National Association of Insurance Commissioners (NAIC) on new long term care insurance (LTCI) purchases (traditional and Partnership) by US state (weighted by the population over age 65 to make the data comparable). We use a difference-in-differences strategy to obtain estimates of the program effect of the LTCP on the overall uptake of private LTCI, and specifically of LTCP contracts and applications for a subsample of states. Findings suggest no significant effect of LTCP on insurance uptake and an increase in insurance applications. This result points towards a substitution between traditional and partnership contracts.

Item Type: Article
Official URL:
Additional Information: © 2018 Elsevier B.V.
Divisions: Health Policy
Subjects: H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification: H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household
I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy; Regulation; Public Health
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
J - Labor and Demographic Economics > J1 - Demographic Economics > J14 - Economics of the Elderly; Economics of the Handicapped
Sets: Departments > Health Policy
Collections > Economists Online
Date Deposited: 17 Apr 2018 13:25
Last Modified: 20 Feb 2019 06:44

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