| Abstract: |
As the population ages, more Americans than ever before will need long-term
care. The cost of providing services is already straining government and
family budgets, and costs are expected to soar in a few decades when the Baby
Boomers begin to reach their 80s. One option often touted as a possible
solution to the looming crisis is to promote private insurance coverage of
long-term care needs. This brief describes private long-term care insurance
and some of the advantages and limitations of coverage. Despite ongoing
efforts to promote private long-term care insurance, widespread coverage faces
a number of important hurdles, including affordability, uncertainty about
future premium increases, and the disincentives created by the Medicaid safety
net. |