Brief How Much Might New Insurance Programs Improve Financing for Long-Term Services and Supports?
Melissa M. Favreault, Howard Gleckman, Richard W. Johnson
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For decades, policymakers have struggled to address the challenges of financing long-term services and supports, with little success. To better understand new insurance-based alternatives and their effects on people age 65 and older, we analyze several proposals, including mandatory and voluntary options. Although none of these new plans is ideal, each would be an improvement over today’s ineffective financing system, which imposes large out-of-pocket costs on families and shifts costs to the underfunded Medicaid system once those families have exhausted their financial resources. We find substantial trade-offs between voluntary and mandatory insurance and smaller but important differences among voluntary programs.
Research Areas Health and health care Aging and retirement
Tags Medicaid and the Children’s Health Insurance Program  Disability and long-term care
Policy Centers Income and Benefits Policy Center
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Medicaid pays for much of the care received at home and in nursing homes by older adults with health problems who need long-term services and supports (LTSS). New LTSS insurance programs with dedicated premiums or taxes would prefund at least some LTSS expenditures and reduce spending by Medicaid...