Miami University

Long-Term Care Insurance in Ohio
S. L. Davis
2002

Full Report (PDF, 39 pages)
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This study: provides a snapshot of the current long-term care insurance market in the state of Ohio and nationally; discusses the evolution of the market, provides an in-depth look at current products and choices in the state of Ohio, discusses the business of long-term care insurance, examines long-term care insurance regulations, outlines consumers’ ability to make informed decisions; and assesses the adequacy of protection for purchasers against the costs of long-term care and the ability of products to meet consumer needs. Finally, it concludes by offering policy recommendations for the further development of long-term care insurance in Ohio.

Key Findings:

• Three key issues that could determine the success of long-term care insurance include how adequately companies: 1) screen poor risks (underwriting), 2) set premiums, and 3) manage claims.
• A number of states have encouraged the purchase of long-term care insurance. State actions have included two major approaches: requiring insurers to offer long-term care insurance, and encouraging market development through tax incentives and consumer education.
• Consumers can make informed choices only if they have an understanding of the nature of the risk of needing long-term care and the potential for protection from that risk that is offered by insurance.

Future Research Issues:

• How does Ohio compare with other states in adopting and implementing the National Association of Insurance Commissioners model regulations for long-term care insurance?
• What is the effect of the Ohio Senior Health Insurance Information Program?
• To what extent do State of Ohio employees want long-term care insurance and what features would they most like to have included in a policy? What difference does the underwriting mechanism make in enrollment rates?

Conclusions:

The state government can play an important role in encouraging the growth of long-term care insurance. This could be achieved by enhancing the tax treatment of long-term care insurance. Encouraging additional tax provisions for these products would reduce the cost of long-term care insurance for many Ohioans, while increasing the appeal of these policies to state employees and retirees, and strengthening public confidence in this relatively new private insurance coverage.

This research was funded as part of a grant from the Ohio General Assembly, through the Ohio Board of Regents to the Ohio Long-Term Research Project.

Full Report (PDF, 39 pages)

To obtain information concerning the cost and to order printed copies of the full report, contact Scripps Gerontology Center at: 513/529-2914 or Scripps@muohio.edu.

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