IB#14-18 – Long-Term Care: How Big a Risk? Briefs based on the research available from the Center for Retirement Research at Boston College.
The brief’s key findings are:
- Long-term care is expensive, but only 13 percent of single individuals over 65 have long-term care insurance.
- Previous models of care usage appear to understate the risk of going into care and overstate the duration of care for those who require it.
- If long-term care is a more likely, but less expensive, event, fewer people may benefit from insurance than previously estimated.
- Our analysis shows that it is optimal for only about 20-30 percent of single individuals to buy insurance.
- This result strengthens the finding of previous research that Medicaid crowd-out can explain why most households do not buy insurance.
Originally published November 2014, compliments of the Center for Retirement Research at Boston College