Skip to main content

Financing Long-Term Services and Supports for Individuals with Disabilities and Older Adults Workshop Summary (2014) / Chapter Skim
Currently Skimming:

5 The Role of the Private Sector
Pages 41-48

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 41...
... (VanDerhei) T he private sector plays a role in the financing of long-term services and supports both through the provision of long-term care insur ance and through participation in employee retirement plans, and three speakers at the workshop discussed this role.
Read the entire page →
From page 42...
... PRIVATE LONG-TERM CARE INSURANCE John O'Leary O'Leary Marketing Associates Long-term care insurance is an $11 billion business serving more than 7 million consumers, but the penetration of the overall market remains low. Group long-term care insurance covers about 2.3 million people, and individual policies cover 4.8 million.
Read the entire page →
From page 43...
... Higher deductibles and copays will be part of the reason, but innovative wellness programs also are becoming ubiquitous, as is the recognition that earlier knowledge and intervention can ameliorate later problems. Future Options O'Leary outlined three approaches that he suggested the insurance industry could take to limit risk: • First, companies can offer a life or annuity product with a long term care rider.
Read the entire page →
From page 44...
... For example, he described a managed wellness program that would combine a wellness lifestyle program with financial protection so that, for example, premiums or deductibles would be tied to information on health status in a health record in the same way that automobile insurance rates are tied to driving records. The key questions regarding long-term care insurance are who is going to offer it and what is going to be offered.
Read the entire page →
From page 45...
... The fourth option offered by Frank would be to provide targeted public subsidies for long-term care insurance. Redirecting Subsidies Frank described four kinds of federal tax incentives that provide such subsidies: itemized deductions of medical expenses (which include long-term care insurance premiums)
Read the entire page →
From page 46...
... IMPROVING RETIREMENT INCOME ADEqUACY Jack VanDerhei Employee Benefit Research Institute According to a research program conducted at the Employee Benefit Research Institute, 60 percent of the households in the lowest income quartile will run short of money in retirement. They will still have Social Security, but they will have depleted their defined contribution and individual retirement account (IRA)
Read the entire page →
From page 47...
... . In the discussion session, one workshop participant asserted that the estimates of life expectancy generated by the Social Security Administration and the Census Bureau are too conservative.
Read the entire page →

Key Terms

  • income quartile
  • benefit research
  • lowest income
  • employee benefit
  • life expectancy

  • public subsidies
  • automatic escalation
  • jack vanderhei
  • workshop participant
  • reinsurance pools

  • participation rates
  • discussion session
  • selling costs
  • run short
  • care health

  • care markets
  • income employees
  • undergone rate
  • insurance currently
  • vanderhei agreed

  • medical expenses
  • consumer research
  • including lower
  • third income
  • people run

  • expanding private
  • insurance pools
  • private spending
  • housing equity
  • richard frank


    • This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
    More information on Chapter Skim is available.