Do Misperceptions About Medicare Coverage Explain Low Demand For Long-Term Care Insurance?
Document Type
Report
Publication Date
6-5-2025
Published In
Do Misperceptions About Medicare Coverage Explain Low Demand For Long-Term Care Insurance?
Abstract
More than half of Americans aged 65 will likely need long-term care services at some point in their lifetime, and they’ll spend an average of almost $140,000 on such services. Yet, only 14% of people age 60 and over have private long-term care insurance, and about one-third of all long-term care expenses in the U.S. are paid for out of pocket. This paper explores the extent to which misperceptions about Medicare, which doesn’t cover extended use of long-term care services, limit the size of the private long-term care insurance market.
Recommended Citation
P. Ayyagari, Daifeng He, Ellen B. Magenheim, and J. Nie.
(2025).
"Do Misperceptions About Medicare Coverage Explain Low Demand For Long-Term Care Insurance?".
Do Misperceptions About Medicare Coverage Explain Low Demand For Long-Term Care Insurance?.
https://works.swarthmore.edu/fac-economics/542