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Long-term Care Insurance Policy Dropping in the U.S. from 1996 to 2000: Evidence and Implications for Long-term Care Financing


  • Paul E. McNamara
  • Nayoung Lee


While the market for private long-term care insurance in the U.S. has grown dramatically, consumer advocates have argued for increased regulatory attention and for broadened consumer education programs concerning long-term care insurance. We analyse Health and Retirement Survey data from 1996, 1998, and 2000 using a zero-inflated negative binomial regression model of the counts of consecutive periods of long-term care insurance coverage. We find that while a significant proportion of Americans over the age of 50 purchase long-term care insurance, many of these purchasers drop their coverage within a five-year period. This finding raises questions for long-term care insurance researchers and it contains implications for market regulators, public policy makers interested in financing long-term care, as well as for insurance companies and consumer advocates. Copyright 2004 The International Association for the Study of Insurance Economics.

Suggested Citation

  • Paul E. McNamara & Nayoung Lee, 2004. "Long-term Care Insurance Policy Dropping in the U.S. from 1996 to 2000: Evidence and Implications for Long-term Care Financing," The Geneva Papers on Risk and Insurance, The International Association for the Study of Insurance Economics, vol. 29(4), pages 640-651, October.
  • Handle: RePEc:bla:geneva:v:29:y:2004:i:4:p:640-651

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    Cited by:

    1. Leora Friedberg & Wenliang Hou & Wei Sun & Anthony Webb, 2017. "Lapses in Long-Term Care Insurance," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2017-08, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.

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