Question

• Do all Americans have sufficient coverage for long term care services? Explain your answer.
• Why has private long-term care insurance not gained popularity with consumers?

Answer 1

The number of baby boomers are steadily increasing in the US .Therefore the need for long term care facility is also high. Medicaid cover a certain long term care facility.It also varies according to different states. The long term care services is offered to economically weaker group or who has low-income or poor .So it is not applicable to all Americans.

The reason for the private long term care health insurance which has not gained popularity are due to the following

• Inability to afford the insurance plan for all economic groups
• It has a lot of variables which makes the people to be little confused and make them taskier in selecting the right plan for them
• The information provided by them are asymmetric
• Nearly 51 % application are rejected based on the age factors
• They provide only very limited health care services
• The perception of people that they will not need this plan.