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The Private Market for Long‐Term Care Insurance in the United States: A Review of the Evidence

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  • Jeffrey R. Brown
  • Amy Finkelstein

Abstract

This article reviews the growing literature on the market for private long‐term care insurance, a market notable for its small size despite the fact that long‐term care expenses are potentially large and highly uncertain. After summarizing long‐term care utilization and insurance coverage in the United States, the article reviews research on the supply of and the demand for private long‐term care insurance. It concludes that demand‐side factors impose important limits on the size of the private market and that we currently have a limited understanding of how public policies could be designed to encourage the growth of this market.

Suggested Citation

  • Jeffrey R. Brown & Amy Finkelstein, 2009. "The Private Market for Long‐Term Care Insurance in the United States: A Review of the Evidence," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(1), pages 5-29, March.
    • Handle: RePEc:bla:jrinsu:v:76:y:2009:i:1:p:5-29
    DOI: 10.1111/j.1539-6975.2009.01286.x
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