The Unseen Shift: How Partnership Long-term Care Insurance Influences Caregiving Among Older Adults

ObjectivesAlthough the partnership long-term care insurance (PLTC) program was designed to mitigate the low uptake of long-term care insurance (LTCI) and reduce Medicaid’s financial burden, research has predominantly focused on its direct impacts, leaving the effects on informal caregiving unexplored. This study aimed to investigate how the program alters the dynamics of family-provided care, leveraging nationally representative data to unveil the broader consequences of informal caregiving arrangements among older individuals.MethodsData for this study were sourced from the U.S. Health and Retirement Study (1992–2018) and linked with the timing of the PLTC program implementation across states. The analysis compared individuals exposed to the program with those who were not, employing 2-way-fixed-effects and dynamic models to assess its impact on LTCI coverage and reliance on informal caregiving.ResultsThe program positively affected LTCI coverage, increasing insurance uptake among older individuals in the long run. Conversely, a significant negative effect was observed on the receipt of assistance from any helper, indicating a reduced reliance on informal care. This reduction extended specifically to family helpers and children’s assistance with activities of daily living. The analysis suggests that the program effectively reduced the necessity for informal caregiving across several domains.DiscussionThese findings highlight the program’s potential to reshape caregiving dynamics, suggesting the need for policies that balance promoting private insurance uptake with the implications for family caregiving roles. Policymakers should consider both the economic benefits and the social shifts induced by such programs in the long-term care landscape.