The Effect of Income on Long Term Care Insurance Coverage

Posted: 18 Jun 2007

See all articles by France Weaver

France Weaver

Center for Health Care and Policy Research

John R. Moran

Penn State University

Monika Setia

Pennsylvania State University

Date Written: June 2007

Abstract

We estimate the effect of income on the prevalence of private long-term care insurance coverage in the United States using exogenous variation in Social Security payments created by the Social Security Benefits notch. Data are from the 1995 wave of the Assets and Health Dynamics Among the Oldest Old (AHEAD) survey. Our estimates suggest that the absolute effect of income on long-term care insurance coverage is small. Thus, reductions in Social Security benefits, such as those proposed to ensure the future solvency of the Social Security program, should not significantly reduce the fraction of elderly households with long-term care insurance coverage.

Keywords: income, long term care insurance

JEL Classification: J14

Suggested Citation

Weaver, France and Moran, John R. and Setia, Monika, The Effect of Income on Long Term Care Insurance Coverage (June 2007). iHEA 2007 6th World Congress: Explorations in Health Economics Paper. Available at SSRN: https://ssrn.com/abstract=993370

France Weaver (Contact Author)

Center for Health Care and Policy Research ( email )

Henderson Building 16C
University Park, PA 16802
United States
814 863 08 48 (Phone)
814 863 08 46 (Fax)

John R. Moran

Penn State University ( email )

116 Henderson Bldg.
Penn State University
University Park, PA 16802
United States

Monika Setia

Pennsylvania State University ( email )

308 armsby
university park, PA 16802
United States

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