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Means-tested public support and the interaction between long-term care insurance and informal care

Author

Listed:
  • Jean-Marc Bascans

    (University of Poitiers)

  • Christophe Courbage

    (University of Applied Sciences Western Switzerland (HES-SO))

  • Cornel Oros

    (University of Poitiers
    University of Orléans, LEO)

Abstract

This paper investigates theoretically how the structure of means-tested public long-term care (LTC) support influences the relationship between LTC insurance and informal care. Three types of public support encountered in various means-tested LTC schemes are examined. First, the level to be considered for means-testing only takes into account the level of wealth of the recipient without considering the cost of LTC or the possible insurance benefits. Second, the public support also considers the LTC needs of the recipient. Third, the means-test structure takes into consideration insurance benefits as well. Our results show that the optimal levels of insurance and informal care as well as their relationship are strongly influenced by the ways means-tested public support for LTC is structured, which have important implications in terms of public policy for the financing of LTC needs.

Suggested Citation

  • Jean-Marc Bascans & Christophe Courbage & Cornel Oros, 2017. "Means-tested public support and the interaction between long-term care insurance and informal care," International Journal of Health Economics and Management, Springer, vol. 17(2), pages 113-133, June.
    • Handle: RePEc:kap:ijhcfe:v:17:y:2017:i:2:d:10.1007_s10754-016-9206-4
    DOI: 10.1007/s10754-016-9206-4
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    Cited by:

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    3. Christophe Courbage & Guillem Montoliu-Montes & Joël Wagner, 2020. "The effect of long-term care public benefits and insurance on informal care from outside the household: empirical evidence from Italy and Spain," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(8), pages 1131-1147, November.

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    More about this item

    Keywords

    Long-term care; Informal care; Long-term care insurance; Means testing;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I1 - Health, Education, and Welfare - - Health
    • J1 - Labor and Demographic Economics - - Demographic Economics

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