Developments in Long-Term Care Insurance in Japan

24 Pages Posted: 7 Apr 2008

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER)

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics

Satoshi Shimizutani

Hitotsubashi University - Institute of Economic Research

Date Written: January 2008

Abstract

The recently-enacted Japanese long-term care (LTC) system was implemented to reduce 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 demand for LTC in Japan - particularly home care - is growing rapidly, as elderly consumers find subsidized LTC care preferable to and more available than hospitalization. At the same time, regional disparities in care persist and are likely to grow.

Keywords: health insurance, aging, elderly care, hospital, disability, means-testing, nursing home

JEL Classification: H42, H51, J10

Suggested Citation

Mitchell, Olivia S. and Piggott, John and Shimizutani, Satoshi, Developments in Long-Term Care Insurance in Japan (January 2008). UNSW Australian School of Business Research Paper No. 2008 ECON 01. Available at SSRN: https://ssrn.com/abstract=1115186 or http://dx.doi.org/10.2139/ssrn.1115186

Olivia S. Mitchell (Contact Author)

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

Satoshi Shimizutani

Hitotsubashi University - Institute of Economic Research ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8306
Japan

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