skip to Main Content

Solving the Long-Term Care Cost Problem

Summary

Avalere research shows that enrollment in a voluntary long-term care insurance program would not be large enough to shift our financing system from Medicaid to private insurance.

For many years, Congress and industry groups have debated how to best narrow the role of Medicaid in financing long-term supports and services (LTSS) and broaden the role of insurance.

Stakeholders generally accept that an insurance-based system is preferable to a welfare-based one; but any such shift depends on Congress’ ability to reach a compromise.

There are only two ways to increase insurance coverage: offer it and hope people choose to enroll, or mandate enrollment. Avalere’s research shows that enrollment in a voluntary long-term care insurance program would not be large enough to shift our financing system from Medicaid to private insurance.

Using new data from the Research Triangle Institute and Avalere’s long-term care model, we can estimate the impact of mandatory and voluntary insurance on Medicaid spending.

Without a mandate for long-term care insurance, policymakers are implicitly making the choice to maintain Medicaid funding as the primary source of payment for LTSS.

Back To Top