The Relationship between Private Long-term Care Insurance Premiums, Population Structure and Public Policies

The ageing population and demand for long-term care are challenges faced by the United States. Due to the high cost of LTC, there is a public private partnership program encourages individual to purchase long-term care insurance. However, the growth of private LTC insurance sales may be varied by state. Previous studies have examined that demand for private LTC insurance at the micro-level, relatively few papers have attempted to investigate this issue from the macro-level. By using the panel data from 2006 to 2016 in the United States, this study examines the relationship between the private LTC insurance premiums and population structure by states. We also investigate the eect of LTC partnership program in the analysis. The empirical results indicate that the percentage of population that is age 65 and older, partnership program and private LTC insurance premiums are positively related. Furthermore, the empirical result indicates that the percentage of a state population that is age 65 and older still hold when we use the sample with its ageing rate is between 7 percent-14 percent (aging society). Our ndings prove that population structure is important in determining the private LTC insurance premiums.補正完