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Who is willing to pay for long-term care insurance in Catalonia?

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  • Costa-Font, Joan
  • Rovira-Forns, Joan

Abstract

Both public and private insurance for long-term care (LTC) in European countries employed is underdeveloped. However, limited evidence is gathered on the behavioural demand responses to the introduction of insurance schemes expanding insurance coverage. This paper aims at empirically examining the determinants of the ex ante demand for LTC coverage drawing upon an insurance-based WTP referendum approach format. Data is collected from a representative population sample of Catalonia (Spain), before a countrywide funding system was developed. Our findings suggest that (based on our questionnaire format) only one-fifth of the population is willing to pay for LTC coverage though it is a highly elastic product. Ex ante demand for LTC coverage is driven by individual's perceptions of old age disability risk (private information asymmetry) and housing tenure (giving rise to self-insurance), the latter reduces the probability of insurance coverage demand.

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  • Costa-Font, Joan & Rovira-Forns, Joan, 2008. "Who is willing to pay for long-term care insurance in Catalonia?," Health Policy, Elsevier, vol. 86(1), pages 72-84, April.
    • Handle: RePEc:eee:hepoli:v:86:y:2008:i:1:p:72-84
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    Cited by:

    1. Lambregts, Timo R. & Schut, Frederik T., 2020. "Displaced, disliked and misunderstood: A systematic review of the reasons for low uptake of long-term care insurance and life annuities," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    2. Eling, Martin & Ghavibazoo, Omid & Hanewald, Katja, 2021. "Willingness to take financial risks and insurance holdings: A European survey," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    3. Martin Eling & Omid Ghavibazoo, 2019. "Research on long-term care insurance: status quo and directions for future research," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(2), pages 303-356, April.
    4. Sandrine Juin, 2016. "Care for dependent elderly people : dealing with health and financing issues," Erudite Ph.D Dissertations, Erudite, number ph16-02 edited by Thomas Barnay, December.
    5. Alain Paraponaris & Bérengère Davin & Pierre Verger, 2012. "Formal and informal care for disabled elderly living in the community: an appraisal of French care composition and costs," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(3), pages 327-336, June.
    6. Sergi Jiménez‐Martín & José M. Labeaga‐Azcona & Cristina Vilaplana‐Prieto, 2016. "Interactions between Private Health and Long‐term Care Insurance and the Effects of the Crisis: Evidence for Spain," Health Economics, John Wiley & Sons, Ltd., vol. 25(S2), pages 159-179, November.
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    8. Akaichi, Faical & Costa-Font, Joan & Frank, Richard, 2020. "Uninsured by Choice? A choice experiment on long term care insurance," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 422-434.
    9. Martín-Fernández, Jesús & Gómez-Gascón, Tomás & Oliva-Moreno, Juan & del Cura-González, María Isabel & Domínguez-Bidagor, Julia & Beamud-Lagos, Milagros & Sanz-Cuesta, Teresa, 2010. "Perception of the economic value of primary care services: A willingness to pay study," Health Policy, Elsevier, vol. 94(3), pages 266-272, March.
    10. Kunal Rajesh Lahoti & Shivani Hanji & Pratik Kamble & Kavita Vemuri, 2023. "Impact of Loss-Framing and Risk Attitudes on Insurance Purchase: Insights from a Game-like Interface Study," Papers 2310.13300, arXiv.org.
    11. Jesús Martín-Fernández & Mª Isabel del Cura-González & Gemma Rodríguez-Martínez & Gloria Ariza-Cardiel & Javier Zamora & Tomás Gómez-Gascón & Elena Polentinos-Castro & Francisco Javier Pérez-Rivas & J, 2013. "Economic Valuation of Health Care Services in Public Health Systems: A Study about Willingness to Pay (WTP) for Nursing Consultations," PLOS ONE, Public Library of Science, vol. 8(4), pages 1-9, April.
    12. repec:dau:papers:123456789/5054 is not listed on IDEAS
    13. Rinaldo Brau & Matteo Lippi Bruni & Anna Maria Pinna, 2010. "Public versus private demand for covering long-term care expenditures," Applied Economics, Taylor & Francis Journals, vol. 42(28), pages 3651-3668.
    14. Plisson, Manuel, 2009. "Assurabilité et développement de l'assurance dépendance," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/5064 edited by Lorenzi, Jean-Hervé.
    15. Qun Wang & Yi Zhou & Xinrui Ding & Xiaohua Ying, 2017. "Demand for Long-Term Care Insurance in China," IJERPH, MDPI, vol. 15(1), pages 1-15, December.
    16. Maximilien Nayaradou & Sébastien Nouet & Manuel Plisson, 2016. "Les mécanismes économiques et financiers associés à la couverture dépendance : une analyse exploratoire sur données bancaires," Revue d'économie financière, Association d'économie financière, vol. 0(2), pages 273-326.

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