PSYC 5571 Lecture Notes - Lecture 11: Adverse Selection, Long-Term Care Insurance, Term Life Insurance
Document Summary
Percentage of people 65+ is increasing rapidly. Number of people requiring long term care will increase by 2 or 3 times in the coming years. Not covered by medicare, but is covered by medicaid. There is long-term care insurance, but not a lot of people buy it: makes more sense for people in the middle of the income distribution, doesn"t make as much sense for people in the low/high end. Low end qualify for medicaid, the richest can pay for it without insurance. Lots of long term issues concerning long-term care. Decent long term care is really expensive: semi private room is about k a year, this is moving up, if you want your own room it could be k a year. Many who work as aids in long term care facilities are immigrant women. Adverse selection: people who know they are going to need it are the only ones who are going buy the insurance.
