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An Empirical Analysis of Patterns in the Japanese Long-Term Care Insurance System

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  • Olivia S Mitchell

    (Department of Insurance & Risk Management, Wharton School, University of Pennsylvania, 3641 Locust Walk, 304 CPC, Philadelphia, PA 19104-6218, U.S.A.)

  • John Piggott

    (School of Economics, University of New South Wales, Sydney 2052, Australia.)

  • Satoshi Shimizutani

    (Institute for International Policy Studies (IIPS), Toranomon 30 Mori Building, 6F Toranomon 3-2-2, Minato-ku, Tokyo 105-0001, Japan.)

Abstract

The recently enacted Japanese long-term care (LTC) system was implemented to reduce the so-called “social hospitalization” or warehousing of the elderly in expensive medical facilities. This paper seeks to evaluate recent patterns in Japanese LTC use and examine the factors associated with LTC utilization patterns. We show that the use of LTC in Japan – particularly home care – is growing rapidly, as the elderly consumers find subsidized LTC care preferable to and more available than hospitalization. At the same time, regional disparities in terms of entitlement and care use persist and are likely to grow. The Geneva Papers (2008) 33, 694–709. doi:10.1057/gpp.2008.25

Suggested Citation

  • Olivia S Mitchell & John Piggott & Satoshi Shimizutani, 2008. "An Empirical Analysis of Patterns in the Japanese Long-Term Care Insurance System," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 33(4), pages 694-709, October.
    • Handle: RePEc:pal:gpprii:v:33:y:2008:i:4:p:694-709
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    1. repec:dau:papers:123456789/5054 is not listed on IDEAS
    2. Kato, Ryuta Ray, 2018. "The future prospect of the long-term care insurance in Japan," Japan and the World Economy, Elsevier, vol. 47(C), pages 1-17.
    3. Manuel L. Esquível & Gracinda R. Guerreiro & Matilde C. Oliveira & Pedro Corte Real, 2021. "Calibration of Transition Intensities for a Multistate Model: Application to Long-Term Care," Risks, MDPI, vol. 9(2), pages 1-17, February.
    4. Yamada, Hiroyuki & Shimizutani, Satoshi, 2015. "Labor market outcomes of informal care provision in Japan," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 79-88.
    5. Noguchi, Haruko & Shimizutani, Satoshi, 2011. "The determinants of exit from institutions and the price elasticity of institutional care: Evidence from Japanese micro-level data," Journal of the Japanese and International Economies, Elsevier, vol. 25(2), pages 131-142, June.
    6. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "The Future of Long-term Care in Japan," Discussion papers 13064, Research Institute of Economy, Trade and Industry (RIETI).
    7. Shinya Sugawara, 2022. "What composes desirable formal at-home elder care? An analysis for multiple service combinations," The Japanese Economic Review, Springer, vol. 73(2), pages 373-402, April.

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