Uninsured by choice? A choice experiment on long term care insurance / Faical Akaichi (SRUC Edinburgh), Joan Costa-Font (London School of Economics and Political Science and IZA), Richard Frank (Harvard University)
VerfasserAkaichi, Faical ; Costa-i-Font, Joan ; Frank, Richard G.
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, July 2019
Elektronische Ressource
Umfang1 Online-Ressource (39 Seiten) : Diagramme
SerieDiscussion paper ; no. 12501
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Uninsured by choice? A choice experiment on long term care insurance [0.72 mb]
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We examine evidence from two unique discrete choice experiments (DCE) on long term care insurance and several of its relevant attributes, and more specifically, choices made by 15,298 individuals in the United States with and without insurance. We study the valuation of the following insurance attributes, namely daily insurance benefit, insurance coverage, the compulsory and voluntary nature of the insurance policy design, alongside the costs (insurance premium) and health requirements This paper investigates respondents preferences and willingness to pay (WTP) for these care insurances attributes using a random parameter logit model, and assess the heterogeneity of choice responses using demographic, socioeconomic and attitudinal motivations to segment response to insurance choices. We find that an increase in the insurance premium by an additional 100US$ would reduce insurance uptake by 1pp. Insurance policy uptake is higher when it provides benefits for the lifetime (the monthly marginal WTP being $178.64), and voluntary (the monthly marginal WTP increases by an extra $74.71) as opposed to universal, and when it forgoes health checks (the monthly marginal WTP increases by an extra 28US$).