The Impact of Consumer Numeracy on the Purchase of Long-Term Care Insurance.

TitleThe Impact of Consumer Numeracy on the Purchase of Long-Term Care Insurance.
Publication TypeJournal Article
Year of Publication2016
AuthorsMcGarry, BE, Temkin-Greener, H, Chapman, BP, Grabowski, DC, Li, Y
JournalHealth Serv Res
Date Published2016 08
ISSN Number1475-6773
KeywordsConsumer Behavior, Financing, Personal, Health Surveys, Humans, Insurance, Long-Term Care, Middle Aged

OBJECTIVE: To determine the effect of consumers' numeric abilities on the likelihood of owning private long-term care insurance.

DATA SOURCE: The 2010 wave of the Health and Retirement Study, a nationally representative survey of Americans age 50 and older, was used (n = 12,796).

STUDY DESIGN: Multivariate logistic regression was used to isolate the relationship between numeracy and long-term care insurance ownership.

PRINCIPAL FINDINGS: Each additional question answered correctly on a numeracy scale was associated with a 13 percent increase in the likelihood of holding LTCI, after controlling for predictors of policy demand, education, and cognitive function.

CONCLUSIONS: Poor numeracy may create barriers to long-term care insurance purchase. Policy efforts aimed at increasing consumer decision support or restructuring the marketplace for long-term care insurance may be needed to increase older adults' ability to prepare for future long-term care expenses.

User Guide Notes

Endnote Keywords

Older adults
Long-term care
Health insurance

Alternate JournalHealth Serv Res
Citation Key8482
PubMed ID26799778
PubMed Central IDPMC4946025
Grant ListR01 MD007662 / MD / NIMHD NIH HHS / United States
R36 HS023714 / HS / AHRQ HHS / United States