کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
969366 1479469 2011 14 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
The impact of state tax subsidies for private long-term care insurance on coverage and Medicaid expenditures
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
The impact of state tax subsidies for private long-term care insurance on coverage and Medicaid expenditures
چکیده انگلیسی

In spite of the large expected costs of needing long-term care, only 10–12% of the elderly population has private insurance coverage. Medicaid, which provides means-tested public assistance and pays for almost half of long-term care costs, spends more than $100 billion annually on long-term care. In this paper, I exploit variation in the adoption and generosity of state tax subsidies for private long-term care insurance to determine whether tax subsidies increase private coverage and reduce Medicaid's costs for long-term care. The results indicate that the average tax subsidy raises coverage rates by 2.7 percentage points, or 28%. However, the response is concentrated among high income and asset-rich individuals, populations with low probabilities of relying on Medicaid. Simulations suggest each dollar of state tax expenditure produces approximately $0.84 in Medicaid savings, over half of which funnels to the federal government.

Research Highlights
► Tax subsidies for private long-term care insurance were implemented to promote coverage and reduce Medicaid expenditures for long-term care.
► The presence of tax subsidies increases coverage rates by 2.7 percentage points, or 28%.
► The response is concentrated among high income and asset-rich individuals.
► Simulations suggest each dollar of state tax expenditure produces approximately $0.84 in Medicaid savings.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Public Economics - Volume 95, Issues 7–8, August 2011, Pages 744–757
نویسندگان
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