A Comparative Analysis of the Socio-Demographic and Attitudinal Characteristics of Active Buyers and Non-Buyers of Long-Term Care Insurance in the Federal, Private and Public Sectors

08/25/2004

U.S. Department of Health and Human Services

A Comparative Analysis of the Socio-Demographic and Attitudinal Characteristics of Active Buyers and Non-Buyers of Long-Term Care Insurance in the Federal, Private and Public Sectors

LifePlans, Inc.

August 25, 2004

PDF Version: http://aspe.hhs.gov/daltcp/reports/2004/LTCIchar.pdf (34 PDF pages)


This data brief was prepared under contract between the U.S. Department of Health and Human Services (HHS), Office of Disability, Aging and Long-Term Care Policy (DALTCP) and Abt Associates. The brief was written by LifePlans, Inc. For additional information about the study, you may visit the DALTCP home page at http://aspe.hhs.gov/_/office_specific/daltcp.cfm or contact the ASPE Project Officer, Hunter McKay, at HHS/ASPE/DALTCP, Room 424E, H.H. Humphrey Building, 200 Independence Avenue, SW, Washington, DC 20201. His e-mail address is: Hunter.McKay@hhs.gov.


This data brief is one of eight commissioned by the Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation to analyze survey data collected by Long Term Care Partners from members of the federal family regarding the long-term care insurance offering available to them. This brief analyzes how geography is associated with long-term care insurance. The remaining briefs address: a Profile of Buyers; a Profile of Non-Buyers; a Profile of Non-Responders; a Comparison of Active and Retired Buyers, Non-Buyers and Non-Responders; a Comparison of Engagement and Participation among Buyers, Non-Buyers and Non-Responders; a Multivariate Analysis of Buyers and Non-Buyers; and a Comparative Analysis of Socio-Demographic and Attitudinal Characteristics. A Literature Review is also available.

I. BACKGROUND

One of the more ambitious proposals for encouraging growth in the private insurance market was passage of the Long Term Care Security Act (Public Law 106-265). This Act was passed in the summer of 2000 and was signed into law on September 19th of that year. It authorized the U.S. Office of Personnel Management (OPM) to contract for a long-term care (LTC) insurance program for federal employees. Coverage would be available to active federal employees and annuitants (civilian retirees), as well as active and retired members of the uniformed services. "Qualified relatives" of active workers and military personnel including spouses, adult children, parents, and parents-in-law would also be covered by the program. OPM expected that, like the health and life insurance programs it administers, the Federal Long-Term Care Insurance Program (FLTCIP) would become the largest employer-sponsored LTC insurance program in the nation.

The development of the program was in part meant to send a message to other employers around the country that a "progressive" employer is one that offers LTC insurance to its employees. Naturally it was expected that implementation of the program would spur additional interest and growth in the market. The program began in earnest in July 2002, which constituted the beginning of the open enrollment period. The carriers underwriting the program -- John Hancock and MetLife -- formed a joint venture called Long Term Care Partners, LLC, which is devoted exclusively to administering the program.

Long Term Care Partners conducted one of the largest LTC educational campaigns ever. More than one million people requested enrollment kits. As of August 2004, more than 300,000 applications had been received and more than 210,000 policies issued. About 64% of enrollees were active employees and spouses, 31% annuitants and their spouses, and another 5% surviving spouses, parents/in-laws and adult children. Thus, in relatively short order, the FLTCIP became one of the largest group programs in the United States. In part this was due to the significant marketing and enrollment activities including more than 2,100 educational meetings, briefings to human resources staff and outreach programs to affinity groups.

The large number of enrollments affords a unique opportunity to better understand the attitudes and perspectives of both working and retired individuals regarding LTC concerns, the importance of planning, and the role that insurance may (or may not) play in meeting the needs of disabled individuals. An examination of such attitudes can assist policymakers as well as insurers to better understand marketplace opportunities and barriers, and devise strategies to encourage growth in the market.

II. PURPOSE

This is the seventh in a series of data briefs based on the information collected from active buyers and non-buyers of the federal program, other public LTC insurance programs, and private employer group insurance plans. The purpose of this data brief is to analyze survey data collected from members of the federal family and compare their attitudes and opinions to those of individuals offered coverage in other public programs as well as those offered coverage in private sector employer-group settings. The analysis focuses on the attitudes, opinions and motivations of individuals who purchased and did not purchase policies, and on their experience with LTC, and opinions about LTC insurance. Relevant research questions answered in this brief include (but are not limited to) the following:

  • How do the demographic and characteristics of active buyers and non-buyers differ across these market segments?
  • What are the attitudes and opinions about retirement planning among active buyers and non-buyers across these market segments?
  • What are the similarities and/or differences in knowledge of LTC and insurance among the samples?

III. METHOD AND SAMPLE

Long Term Care Partners used mail surveys to collect information from active buyers and non-buyers. For purposes of this research, the active sample consists of employees who are actively working. A "buyer" is someone who has purchased the insurance plan and paid premiums beyond the free look period. A "non-buyer" is defined as someone who expressed interest in a program but had not purchased the plan at the time that the survey was completed.

Three market segments are analyzed: (1) The Federal Long-Term Care Insurance Program "(FLTCIP)"; (2) The Employer Group market "(Private Programs)"; and (3) Other Public LTC Insurance Programs "(Public Programs)". Table 1 shows the number of active buyer and non-buyer respondents in each market segment. As shown, roughly 3,700 individuals participated in the various surveys of actives, all of which have been conducted within the last five years.1 The number of employers represented in the "Private Programs" sample is nine and there are four large state programs represented in the "Public Market" category. It should be noted that not all of these interviewees have responded to all of the questions that are presented here and in a number of cases, comparability issues preclude direct comparisons of responses across surveys.

TABLE 1: Buyer and Non-Buyer Respondents by Market Segment
    Federal Program  "FLTCIP" Nine Employer  Groups  "Private Programs"   Four State  Sponsored Programs  "Public Programs"
Active Buyers 642 501 1,061
Active Non-Buyers   575 164 762
Total 1,217 665 1,823
NOTE: The state programs include the North Carolina State Teachers, Minnesota Public Employees, the California Public Employees Retirement System (CALPERS) and Michigan Public Employees.

The analyses are conducted separately for active buyers and non-buyers and unless otherwise noted, all of the differences among the samples described in this brief are statistically significant at the 5% level or better. Also note that the reference group to which most comparisons are made is the FLTCIP.

IV. FINDINGS

A. Socio-Demographic Characteristics

Figure 1 summarizes important demographic characteristics of the active sample by market segment. As shown, compared to other market segments, buyers of the FLTCIP tend to be somewhat older, are less likely to be married, and more likely to be male than buyers in the other market segments. The average age of buyers of the FLTCIP is 53 years whereas for other public programs it is 50 years; the private programs examined have the youngest average age -- 47 years. FLTCIP buyers also tend to have higher income levels, which may reflect the fact that they are also older, hence have more years of experience in the labor force. On the other hand, compared to buyers in the private market they are less likely to have accumulated high levels of liquid assets and they are also less likely to have children living nearby. This suggests that many of the FLTCIP and Public Program buyers may view having LTC insurance as enabling them to purchase services that would otherwise have been provided by family members. In contrast, private program buyers, who are more likely to be married and have children living nearby, may view the role of the insurance as protecting higher levels of accumulated assets or as meeting other objectives.

FIGURE 1: Demographic Characteristics of Active Buyers by Market Segment
BAR CHART: Married -- FLTCIP Buyers (59%), Private Program Buyers (66%), Public Program Buyers (68%); Male -- FLTCIP Buyers (50%), Private Program Buyers (47%), Public Program Buyers (37%); Age 60 and over -- FLTCIP Buyers (22%), Private Program Buyers (5%), Public Program Buyers (11%); Presence of children nearby -- FLTCIP Buyers (42%), Private Program Buyers (53%), Public Program Buyers (42%); Income greater than $70K -- FLTCIP Buyers (68%), Private Program Buyers (60%), Public Program Buyers (55%); Assets greater than $140K -- FLTCIP Buyers (41%), Private Program Buyers (60%), Public Program Buyers (38%).
SOURCE: Analysis of data from the FLTCIP, 2003; America's Health Insurance Plans, 2000; MetLife, 2001; MedAmerica, 2000.

Figure 2 compares the demographic characteristics of individuals who chose not to purchase a policy by market segment. As shown, non-buyers of the FLTCIP tend to be older than those in other market segments -- 53 years compared to 49 years in public programs and 45 years in private programs. They also tend to be more male and have higher levels of income yet lower levels of assets. In contrast to active buyers there are no significant differences in the proportion that are married and have children living nearby across the market segments.

FIGURE 2: Demographic Characteristics of Active Non-Buyers by Market Segment
BAR CHART: Married -- FLTCIP Buyers (70%), Private Program Buyers (64%), Public Program Buyers (72%); Male -- FLTCIP Buyers (59%), Private Program Buyers (37%), Public Program Buyers (44%); Age 60 and over -- FLTCIP Buyers (23%), Private Program Buyers (5%), Public Program Buyers (10%); Presence of children nearby -- FLTCIP Buyers (59%), Private Program Buyers (57%), Public Program Buyers (52%); Income greater than $70K -- FLTCIP Buyers (50%), Private Program Buyers (38%), Public Program Buyers (44%); Assets greater than $140K -- FLTCIP Buyers (24%), Private Program Buyers (28%), Public Program Buyers (32%).
SOURCE: Analysis of data from the FLTCIP, 2003; America's Health Insurance Plans, 2000; MetLife, 2001; MedAmerica, 2000.

When we examine and compare buyers to non-buyers across market segments, we find that the greatest variable of difference that is consistent across markets is wealth: non-buyers tend to have lower levels of assets and lower incomes than buyers.

B. Attitudes and Opinions about Retirement Planning and Long-Term Care

One thing that we know from previous briefs is that federal employees as a whole seem to be active in planning for their retirement and understand the potential LTC risks associated with later life. One would expect that buyers would at least be most likely to feel confident about their planning for both retirement and LTC, and more likely to be concerned about being prepared for future LTC needs. We asked a series of questions designed to illuminate differences across markets and between buyers and non-buyers regarding these issues.

Figure 3 shows how buyers across market segments feel about retirement and LTC planning. Many of the questions were not asked of Private Program buyers so comparisons to this group are somewhat more limited. What is striking is the very high percentage of FLTCIP buyers who have done retirement planning and who have given a great deal of thought to paying for LTC when compared with buyers of other public programs. This may reflect the very targeted and focused marketing and education campaign to which the FLTCIP buyers were exposed.

FIGURE 3: Attitudes about Retirement Planning among Buyers by Market Segment
BAR CHART: Have done retirement planning -- Active FLTCIP Buyers (87%), Active Public Program Buyers (52%); Concerned about paying for long term care -- Active FLTCIP Buyers (69%), Active Private Program Buyers (77%); Confident there is enough money for retirement -- Active FLTCIP Buyers (83%), Active Public Program Buyers (93%); Have given great deal of thought to paying for LTC -- Active FLTCIP Buyers (60%), Active Public Program Buyers (40%); Believe that in absence of insurance would have to self-pay -- Active FLTCIP Buyers (41%), Active Private Program Buyers (53%), Active Public Program Buyers (34%).
SOURCE: Analysis of data from the FLTCIP, 2003; America's Health Insurance Plans, 2000; MetLife, 2001; MedAmerica, 2000.

Somewhat surprisingly, private program buyers are more likely to express concern about how they will pay for LTC expenses than are FLTCIP buyers. This may reflect an underlying uncertainty about the continued value of the product or about the stability of the company offering the product. Given the very strong affinity among federal employees, the fact that they are somewhat less concerned about paying for LTC may reflect their belief that the government will continue to protect their interests well into the future. Alternatively, that relatively high percentages of buyers in each market segment continue to worry about paying for LTC suggests that there may remain uncertainty about the product or about the level of coverage chosen.

The insurance industry has invested heavily in educating consumers about LTC financing. Buyers were asked who would pay for LTC expenses in the absence of insurance. Somewhat surprisingly, private market buyers were most likely to understand that the liability would fall on their shoulders. A smaller percentage of FLTCIP and other public program buyers believed that they would have to pay for LTC in the absence of their policy; they were more likely to believe that other insurance or other government programs would pay for the care. As well, many were unsure about how such costs would be paid (in the absence of their insurance).

Figure 4 displays similar results for non-buyers across each of the market segments. As shown, FLTCIP non-buyers are much more likely to have engaged in retirement planning than other public program non-buyers. They are, however, less concerned about paying for LTC. This may be explained in part by the fact that they are also more likely to believe that other insurance or government programs will pay for LTC if it is needed. Also, private program non-buyers are much more likely to be concerned about paying for LTC; they have a better understanding that the liability would be theirs and would not be covered by other programs or insurance.

FIGURE 4: Attitudes about Retirement Planning among Non-Buyers by Market Segment
BAR CHART: Have done retirement planning -- Active FLTCIP Non-Buyers (78%), Active Public Program Non-Buyers (55%); Concerned about paying for long term care -- Active FLTCIP Non-Buyers (62%), Active Private Program Non-Buyers (83%); Confident there is enough money for retirement -- Active FLTCIP Non-Buyers (68%), Active Public Program Non-Buyers (78%); Have given great deal of thought to paying for LTC -- Active FLTCIP Non-Buyers (28%), Active Public Program Non-Buyers (23%); Believe would have to self-pay long term care -- Active FLTCIP Non-Buyers (21%), Active Private Program Non-Buyers (37%), Active Public Program Non-Buyers (24%).
SOURCE: Analysis of data from the FLTCIP, 2003; America's Health Insurance Plans, 2000; MetLife, 2001; MedAmerica, 2000.

When comparing buyers and non-buyers across the market segments, a fairly consistent pattern emerges. Buyers are more likely to have done retirement planning, are more confident that they will have adequate resources to enjoy their retirement, have given more thought to paying for LTC, and are more likely to understand that without private insurance, the LTC liability will fall on their shoulders.

C. The Purchase Process

Prior research has shown that most individuals who purchase LTC insurance consult with others before doing so. This is also true of buyers across these three market segments. Buyers of the FLTCIP were, however, more likely to have consulted with a financial planner, work colleague, and children than were buyers in either of the other two market segments.

Non-buyers in the FLTCIP and public program samples were asked how likely they thought it was that they would buy insurance when they requested information about their respective programs. A significant proportion in both groups -- 70% of FLTCIP non-buyers and 80% of public program non-buyers -- thought that they would buy a policy. Obviously, something along the way changed their mind or their initial purchase commitment was weak. When asked about the application process itself, similar proportions of both market segments -- roughly 25% -- indicated that they found the application difficult to understand. This may explain in part, why they did not proceed to buy a policy. Also, as shown below in Figure 5, for the most part, non-buyers in each of the two market segments were less likely to have actively engaged in activities designed to educate and reinforce the need for insurance protection against the cost of LTC.

FIGURE 5: Exposure to Promotional Activities by Market Segment and Purchase Status
BAR CHART: Read Advertisements -- Active FLTCIP Buyers (45%), Active FLTCIP Non-Buyers (52%), Active Public Program Buyers (30%), Active Public Program Non-Buyers (19%); Visit Web -- Active FLTCIP Buyers (69%), Active FLTCIP Non-Buyers (38%), Active Public Program Buyers (50%), Active Public Program Non-Buyers (16%); Attend education meeting -- Active FLTCIP Buyers (34%), Active FLTCIP Non-Buyers (22%), Active Public Program Buyers (43%), Active Public Program Non-Buyers (26%); Read brochures -- Active FLTCIP Buyers (82%), Active FLTCIP Non-Buyers (77%), Active Public Program Buyers (84%), Active Public Program Non-Buyers (65%).
SOURCE: Analysis of data from the FLTCIP, 2003; America's Health Insurance Plans, 2000; MetLife, 2001; MedAmerica, 2000.

D. Motivations Behind the Purchase and Non-Purchase Decision by Market Segment

We have already demonstrated that there are a number of socio-demographic and attitudinal differences among buyers across each of the market segments and among non-buyers in the different segments. Figure 6 below highlights the single most important reason why buyers in each of the market segments chose to purchase a policy. As shown there are significant differences across market segments. Among FLTCIP buyers, assuring that care is affordable when needed is the most important purchase motivation. Among buyers of public programs, being able to avoid having to rely on relatives for care is the most important reason for having a policy. Finally, the most important purchase reason for private market buyers is to avoid having to use family resources to pay for care.

FIGURE 6: Single Most Important Reason for Buying a Policy by Market Segment
BAR CHART: Avoid Using own income -- Active FLTCIP Buyers (22%), Active Private Program Buyers (23%), Active Public Program Buyers (10%); Assure care is affordable -- Active FLTCIP Buyers (28%), Active Private Program Buyers (18%), Active Public Program Buyers (18%); Avoid relying on relatives for care -- Active FLTCIP Buyers (19%), Active Private Program Buyers (19%), Active Public Program Buyers (31%); Assure spouses standard of living -- Active FLTCIP Buyers (7%), Active Private Program Buyers (14%), Active Public Program Buyers (10%); Other -- Active FLTCIP Buyers (24%), Active Private Program Buyers (26%), Active Public Program Buyers (31%).
SOURCE: Analysis of data from the FLTCIP, 2003; America's Health Insurance Plans, 2000; MetLife, 2001; MedAmerica, 2000.

An important point worth noting is that there is less variation in purchase reasons for FLTCIP and public program buyers compared to buyers in the private market. This suggests that the targeted marketing and education campaigns that accompany public program rollouts do focus the attention of buyers on a number of key points regarding the value of the insurance.

FIGURE 7: Reasons for Not Buying a Policy by Market Segment
BAR CHART: Medicare/Medicaid will pay -- Active FLTCIP Non-Buyers (16%), Active Private Program Non-Buyers (25%), Active Public Program Non-Buyers (1%); Too expensive -- Active FLTCIP Non-Buyers (66%), Active Private Program Non-Buyers (72%), Active Public Program Non-Buyers (48%); Don't believe insurers will pay benefits -- Active FLTCIP Non-Buyers (18%), Active Private Program Non-Buyers (37%); Don't mind using own income -- Active FLTCIP Non-Buyers (15%), Active Private Program Non-Buyers (28%), Active Public Program Non-Buyers (2%); Will buy later -- Active FLTCIP Non-Buyers (52%), Active Private Program Non-Buyers (44%), Active Public Program Non-Buyers (45%).
SOURCE: Analysis of data from the FLTCIP, 2003; America's Health Insurance Plans, 2000; MetLife, 2001; MedAmerica, 2000.

Figure 7 below shows the reasons cited by non-buyers as relevant to their decision not to buy a policy. As shown, across each market segment, cost remains the largest barrier to purchase. Between 48% and 72% of respondents cited this as a reason for non-purchase. Roughly one-in-six FLTCIP non-buyers and one-in-four public program non-buyers believe that they do not need the insurance because Medicare or Medicaid will pay. In contrast, the overwhelming majority of non-buyers from public programs do not have this belief: almost none of them believe that the presence of Medicaid or Medicare is a sufficient reason not to buy the insurance.

An interesting finding is that roughly equal proportions of non-buyers across each of these market segments indicate that they are planning to buy the insurance at a later time. Clearly, these "first-time" non-buyers represent a future marketing opportunity. A marketing campaign designed to stress the value of a policy relative to its cost as well as the advantages of purchasing at younger ages, may be particularly effective at "turning" these reluctant potential buyers into actual purchasers.

V. CONCLUSIONS

For the most part, the differences between buyers and non-buyers across each of the market segments are those one would expect. On the other hand, not all "buyers" are the same and neither are all "non-buyers". There are differences in attitudes, socio-demographic characteristics and decision-making that are a function of market segment. Such differences underscore the importance of a highly targeted marketing campaign with a discrete number of messages about LTC, insurance and retirement planning.

NOTES

  1. The Appendix also summarizes information about the retiree sample, of which there are an additional 5,000 respondents.

APPENDIX

Notes for Tables

Unless otherwise indicated, the analysis of the data is based on the responses of 642 active buyers, 575 active non-buyers, 1114 retired buyers, and 586 retired non-buyers from the FLTCIP; 501 active buyers, 164 active non-buyers, 1841 retired buyers, and 360 retired non-buyers from employer group plans; 232 active buyers from North Carolina State Teachers; 198 active buyers, 102 active non-buyers, 162 retired buyers, and 138 retired non-buyers from the California Public Employees Retirement System (CALPERS); 504 active buyers and 326 active non-buyers from the State of Minnesota public employees, and 127 active buyers, 334 active non-buyers, 63 retired buyers, and 279 retired non-buyers from the State of Michigan public employees. It should be noted that not all of these interviewees have responded to all of the questions that we have presented here.

All significance tests are based on 5% level or better. Notations for significance are as follows: If one category out of three contains the symbol (*), then the category starred is statistically different from each of the other two categories, but the non-starred categories are not different from each other. If two categories out of the three contain the symbol (*), then those two categories are statistically different from each other, but each of those categories is not statistically different from the third one. If all three categories contain the symbol (*), then all three are statistically different from each other.

Unless otherwise specified, only the response category that has a notation of significance was tested against all other categories. In some cases, it was determined that a combination of categories would be tested. These are indicated in the footnotes. It also may be the case that if categories were or were not combined, it could change the results of the test of significance.

Unless otherwise indicated, the first response category (i.e., strongly agree, very important, very likely, etc.) or the yes response was tested. Therefore, if there are no notations for significance, the test was not significant at the 5% level.

TABLE A-1: Socio-Demographic Characteristics of Active Buyers1
  Socio-Demographic Characteristics     FLTCIP   Private  Programs   Public  Programs  
Average age 53* 47* 50*
   Less than 50 27% 57% 43%
   50 to 54 25 25 25
   55 to 59 26 13 20
   60 to 64 15 4 9
   65 and over 7 1 3
Gender
   Male 50* 47 37*
   Female 50 43 63
Marital status
   Never Married 17 18 14
   Married 59* 66 68*
   Divorced/separated 18 14 12
   Widowed 4 2 3
   Domestic Partner 2 0 3
Presence of children living within 25 miles2
   Yes 42 43 42
   No 58 47* 58
Education level2
   Less than high school graduate 0 0 0
   High school graduate 6 9 5
   Technical/trade/business school   4 5 6
   Some college 20 21 17
   College graduate3 37 44 37
   Graduate degree 33 21 35
Income
   Less than $30,000 3 8* 3
   $30,000 to $69,999 29 32 42
   $70,000 or more 68* 60 55
Assets2
   Less than $60,000 25 25 38*
   $60,000 to $139,999 34 15 24
   $140,000 and above 41 60* 38
Home ownership4
   Yes 90   87
   No 10   13
  1. It should be noted that not all of these interviewees have responded to all of the questions that we have presented here.
  2. For this category, Public Programs include only the CALPERS and the Minnesota databases.
  3. Here, having a college degree or better is tested for significance against not having a college degree.
  4. For this category, Public Programs include only the CALPERS database.
TABLE A-2: Socio-Demographic Characteristics of Active Non-Buyers
  Socio-Demographic Characteristics     FLTCIP   Private  Programs   Public  Programs  
Average age 53* 45* 49*
   Less than 50 34% 53% 52%
   50 to 54 24 29 22
   55 to 59 19 13 17
   60 to 64 10 4 5
   65 and over 13 1 4
Gender
   Male 59* 37 44
   Female 41 63 56
Marital status
   Never Married 10 17 12
   Married 70 65 72
   Divorced/separated 16 16 12
   Widowed 3 2 2
   Domestic Partner 1 0 2
Presence of children living within 25 miles1
   Yes 59 57 52
   No 41 43 48
Education level1
   Less than high school graduate 1 1 0
   High school graduate 13 12 9
   Technical/trade/business school   5 9 9
   Some college 30 18 16
   College graduate2 28* 37 31*
   Graduate degree 23 23 35
Income
   Less than $30,000 7 14* 6
   $30,000 to $69,999 43 48 50
   $70,000 or more 50* 38* 44
Assets1
   Less than $60,000 44 50 44
   $60,000 to $139,999 32 22 25
   $140,000 and above 24* 28 31*
Home ownership3
   Yes 86   80
   No 14   20
  1. For this category, Public Programs include only the CALPERS and the Minnesota databases.
  2. Here, having a college degree or better is tested for significance against not having a college degree.
  3. For this category, Public Programs include only the CALPERS database.
TABLE A-3: Socio-Demographic Characteristics of Retired Buyers
  Socio-Demographic Characteristics     FLTCIP   Private  Programs   Public  Programs  
Average age 66* 67* 63*
   Less than 50 1% 1% 0%
   50 to 54 3 4 13
   55 to 59 14 10 17
   60 to 64 24 22 31
   65 and over 58 63 39
Gender
   Male 70* 43 42
   Female 30 57 58
Marital status
   Never Married 9 4 7
   Married 68 72* 61*
   Divorced/separated 10 5 18
   Widowed 12 19 13
   Domestic Partner 1 0 1
Presence of children living within 25 miles1
   Yes 51* 62* 58
   No 49 38 42
Education level1
   Less than high school graduate 1 5 0
   High school graduate 14 22 5
   Technical/trade/business school   5 7 1
   Some college 22 19 29
   College graduate2 30 24* 21
   Graduate degree 28 23 44
Income
   Less than $30,000 12 34* 11
   $30,000 to $69,999 51 41 54
   $70,000 or more 37 25* 35
Assets1
   Less than $60,000 17 18 23
   $60,000 to $139,999 30 22 33
   $140,000 and above 53* 60* 44
Home ownership3
   Yes 92*   98
   No 8   2
  1. For this category, Public Programs include only the CALPERS and the Minnesota databases.
  2. Here, having a college degree or better is tested for significance against not having a college degree.
  3. For this category, Public Programs include only the CALPERS database.
TABLE A-4: Socio-Demographic Characteristics of Retired Non-Buyers
  Socio-Demographic Characteristics     FLTCIP   Private  Programs   Public  Programs  
Average age 71* 70 69*
   Less than 50 2% 1% 2%
   50 to 54 3 3 4
   55 to 59 7 4 11
   60 to 64 12 17 20
   65 and over 76 75 63
Gender
   Male 74* 41 34
   Female 26 59 66
Marital status
   Never Married 4 3 6
   Married 70* 66 59*
   Divorced/separated 8 9 14
   Widowed 18 22 21
   Domestic Partner 0 0 0
Presence of children living within 25 miles1
   Yes 55 62 53
   No 45 38 47
Education level1
   Less than high school graduate 4 7 0
   High school graduate 17 29 3
   Technical/trade/business school   8 9 2
   Some college 29 20 23
   College graduate2 24* 21* 21*
   Graduate degree 18 14 51
Income
   Less than $30,000 29 60* 22
   $30,000 to $69,999 50 30 54
   $70,000 or more 21 10* 24
Assets1
   Less than $60,000 36 41 33
   $60,000 to $139,999 26 24 25
   $140,000 and above 38 35 42
Home ownership3
   Yes 90   88
   No 10   12
  1. For this category, Public Programs include only the CALPERS and the Minnesota databases.
  2. Here, having a college degree or better is tested for significance against not having a college degree.
  3. For this category, Public Programs include only the CALPERS database.
TABLE A-5: Attitudes and Opinions About Retirement Planning and LTC Among Active Buyers
  Attitudes and Opinions     FLTCIP   Private  Programs   Public  Programs  
Done retirement planning1
   Yes 87%*   52%
   No 13   48
Confident that there is enough money to live comfortably in retirement1
   Very confident   17*   36
   Somewhat confident 66   57
   Not very confident 13   4
   Not at all confident 4   3
Thought given to paying for LTC expenses1
   A great deal 60*   40
   Some 36   45
   Not much thought 4   13
   No thought at all 0   2
I worry how to pay for LTC
   Strongly agree 19* 24  
   Agree 50 53  
   Disagree 26 22  
   Strongly disagree 5 1  
It is important to plan now for the possibility of needing LTC services in the future1
   Strongly agree 54 53 52
   Agree 45 44 46
   Disagree 1 2 1
   Strongly disagree 0 1 1
LTC insurance programs sold today will cover the cost of LTC services needed in the future1
   Strongly agree 10   11
   Agree 73   74
   Disagree 15   14
   Strongly disagree 2   1
How would LTC costs be paid2,3
   My own income or my children will help pay   41* 53* 34*
   Other sources will pay 59 47 66
  1. For this category, Public Programs include only the CALPERS database.
  2. The different surveys had different response categories for "If you needed LTC and had no LTC insurance how would the cost of LTC services be paid?" Here we report the percentage of those who said that they will pay with own income or that they children will help them pay and group all other responses in one category.
  3. For this category, Public Programs include only the CALPERS and the Minnesota databases.
TABLE A-6: Attitudes and Opinions About Retirement Planning and LTC Among Active Non-Buyers
  Attitudes and Opinions     FLTCIP   Private  Programs   Public  Programs  
Done retirement planning1
   Yes 78%*   55%
   No 22   45
Confident that there is enough money to live comfortably in retirement1
   Very confident 14*   24
   Somewhat confident 55   54
   Not very confident 24   16
   Not at all confident 7   6
Thought given to paying for LTC expenses1
   A great deal 28   23
   Some 47   48
   Not much thought 21   23
   No thought at all 4   6
I worry how to pay for LTC
   Strongly agree 18* 36  
   Agree 44 47  
   Disagree 32 17  
   Strongly disagree 6 0  
It is important to plan now for the possibility of needing LTC services in the future1
   Strongly agree 27 31 35
   Agree 57 59 57
   Disagree 14 10 8
   Strongly disagree 2 0 0
LTC insurance programs sold today will cover the cost of LTC services needed in the future1
   Strongly agree 3*   8
   Agree 41   51
   Disagree 47   31
   Strongly disagree 9   10
How would LTC costs be paid2,3
   My own income or my children will help pay   21 37* 24
   Other sources will pay 79 63 76
  1. For this category, Public Programs include only the CALPERS database.
  2. The different surveys had different response categories for "If you needed LTC and had no LTC insurance how would the cost of LTC services be paid?" Here we report the percentage of those who said that they will pay with own income or that they children will help them pay and group all other responses in one category.
  3. For this category, Public Programs include only the CALPERS and the Minnesota databases.
TABLE A-7: Attitudes and Opinions About Retirement Planning and LTC Among Retired Buyers
  Attitudes and Opinions     FLTCIP   Private  Programs   Public  Programs  
Done retirement planning1
   Yes 87%*   52%
   No 13   48
Confident that there is enough money to live comfortably in retirement1
   Very confident 33*   54
   Somewhat confident 59   43
   Not very confident 7   2
   Not at all confident 1   1
Thought given to paying for LTC expenses1
   A great deal 63   58
   Some 35   35
   Not much thought 2   4
   No thought at all 0   3
I worry how to pay for LTC
   Strongly agree 18* 22  
   Agree 55 48  
   Disagree 23 24  
   Strongly disagree 4 6  
It is important to plan now for the possibility of needing LTC services in the future1
   Strongly agree 47 64* 45
   Agree 53 34 51
   Disagree 0 1 4
   Strongly disagree 0 1 0
LTC insurance programs sold today will cover the cost of LTC services needed in the future1
   Strongly agree 10   14
   Agree 71   74
   Disagree 17   11
   Strongly disagree 2   1
How would LTC costs be paid1,2
   My own income or my children will help pay   63 59 14*3
   Other sources will pay 37 41 86
  1. For this category, Public Programs include only the CALPERS database.
  2. The different surveys had different response categories for "If you needed LTC and had no LTC insurance how would the cost of LTC services be paid?" Here we report the percentage of those who said that they will pay with own income or that they children will help them pay and group all other responses in one category
  3. Thirty-three percent of the responders said that "Medigap" will pay for LTC, 21% said that "Other" will pay and 15% said "Don't know."
TABLE A-8: Attitudes and Opinions About Retirement Planning and LTC Among Retired Non-Buyers
  Attitudes and Opinions     FLTCIP   Private  Programs   Public  Programs  
Done retirement planning1
   Yes 72%*   38%
   No 28   62
Confident that there is enough money to live comfortably in retirement1
   Very confident 22*   41
   Somewhat confident 56   48
   Not very confident 14   6
   Not at all confident 8   5
Thought given to paying for LTC expenses1
   A great deal 36   36
   Some 48   41
   Not much thought 13   16
   No thought at all 3   7
I worry how to pay for LTC
   Strongly agree 19* 33  
   Agree 44 47  
   Disagree 30 17  
   Strongly disagree 7 3  
It is important to plan now for the possibility of needing LTC services in the future1
   Strongly agree 30* 33 41*
   Agree 56 58 54
   Disagree 12 8 5
   Strongly disagree 2 1 0
LTC insurance programs sold today will cover the cost of LTC services needed in the future1
   Strongly agree 3*   11
   Agree 37   43
   Disagree 45   35
   Strongly disagree 15   11
How would LTC costs be paid1,2
   My own income or my children will help pay   35 42 41
   Other sources will pay 65 58 59
  1. For this category, Public Programs include only the CALPERS database.
  2. The different surveys had different response categories for "If you needed LTC and had no LTC insurance how would the cost of LTC services be paid?" Here we report the percentage of those who said that they will pay with own income or that they children will help them pay and group all other responses in one category.
  TABLE A-9: Experience with LTC Among Active Buyers  
  Experiences with LTC     FLTCIP   Private  Programs   Public  Programs  
Respondent/spouse or parent needed LTC
   Yes 62% 65% 50%*
   No 38 35 50
  TABLE A-10: Experience with LTC Among Active Non-Buyers  
  Experiences with LTC     FLTCIP   Private  Programs   Public  Programs  
Respondent/spouse or parent needed LTC
   Yes 62% 64% 39%*
   No 38 36 61
TABLE A-11: Experience with LTC Among Retired Buyers
  Experiences with LTC     FLTCIP   Private  Programs   Public  Programs  
Respondent/spouse or parent needed LTC
   Yes 69%* 76%* 28%*
   No 31 24 72
  1. For this category, Public Programs include only the CALPERS and the Michigan databases.
TABLE A-12: Experience with LTC Among Retired Non-Buyers
  Experiences with LTC     FLTCIP   Private  Programs   Public  Programs  
Respondent/spouse or parent needed LTC
   Yes 66% 73% 31%*
   No 34 27 69
  1. For this category, Public Programs include only the CALPERS and the Michigan databases.
TABLE A-13: Self-Assessed Risk of Needing LTC Among Active Buyers
  Type of LTC     FLTCIP   Private  Programs  
How likely is it that:
a) the respondent thinks he/she will need home care services for more than three months
   Very likely 12%* 20%
   Likely 64 47
   Somewhat likely   20 28
   Not at all likely 4 5
b) the respondent thinks he/she will need nursing home care for more than three months
   Very likely 12* 21
   Likely 58 45
   Somewhat likely 24 28
   Not at all likely 6 6
c) the respondent thinks he/she will need care provided in assisted living facility for more than three months
   Very likely 15* 20
   Likely 62 50
   Somewhat likely 19 25
   Not at all likely 4 5
TABLE A-14: Self-Assessed Risk of Needing LTC Among Active Non-Buyers
  Type of LTC     FLTCIP   Private  Programs  
How likely is it that:
a) the respondent thinks he/she will need home care services for more than three months
   Very likely 11% 14%
   Likely 54 43
   Somewhat likely   27 38
   Not at all likely 8 5
b) the respondent thinks he/she will need nursing home care for more than three months
   Very likely 11 14
   Likely 49 37
   Somewhat likely 29 40
   Not at all likely 11 9
c) the respondent thinks he/she will need care provided in assisted living facility for more than three months
   Very likely 12 13
   Likely 53 44
   Somewhat likely 26 35
   Not at all likely 9 8
TABLE A-15: Self-Assessed Risk of Needing LTC Among Retired Buyers
  Type of LTC     FLTCIP   Private  Programs  
How likely is it that:
a) the respondent thinks he/she will need home care services for more than three months
   Very likely 6%* 18%
   Likely 65 51
   Somewhat likely   23 28
   Not at all likely 6 3
b) the respondent thinks he/she will need nursing home care for more than three months
   Very likely 5* 17
   Likely 60 48
   Somewhat likely 28 30
   Not at all likely 7 5
c) the respondent thinks he/she will need care provided in assisted living facility for more than three months
   Very likely 7* 12
   Likely 66 50
   Somewhat likely 21 33
   Not at all likely 6 5
TABLE A-16: Self-Assessed Risk of Needing LTC Among Retired Non-Buyers
  Type of LTC     FLTCIP   Private  Programs  
How likely is it that:
a) the respondent thinks he/she will need home care services for more than three months
   Very likely 12% 12%
   Likely 58 44
   Somewhat likely   23 37
   Not at all likely 7 7
b) the respondent thinks he/she will need nursing home care for more than three months
   Very likely 11 12
   Likely 54 42
   Somewhat likely 25 39
   Not at all likely 10 7
c) the respondent thinks he/she will need care provided in assisted living facility for more than three months
   Very likely 11 9
   Likely 56 41
   Somewhat likely 24 42
   Not at all likely 9 8
TABLE A-17: Beliefs About LTC Among Active Non-Buyers
  Experiences with LTC     FLTCIP   Private  Programs   Public  Programs  
It is important to avoid using own income and savings to pay for LTC
   Strongly agree 33%   29%
   Agree 45   49
   Disagree 19   19
   Strongly disagree   3   3
There are public programs that will pay the cost of LTC1
   Strongly agree 3 5* 1*
   Agree 23 11 13
   Disagree 59 48 49
   Strongly disagree 15 36 37
  1. For this category, Public Programs include only the CALPERS database.
TABLE A-18: Beliefs About LTC Among Retired Non-Buyers
  Experiences with LTC     FLTCIP   Private  Programs   Public  Programs  
It is important to avoid using own income and savings to pay for LTC
   Strongly agree 32%*   22%
   Agree 45   51
   Disagree 19   22
   Strongly disagree   4   5
There are public programs that will pay the cost of LTC1
   Strongly agree 4 15* 3
   Agree 19 17 5
   Disagree 57 35 62
   Strongly disagree 20 33 30
  1. For this category, Public Programs include only the CALPERS database.
TABLE A-19: Opinions about LTC Insurance Among Active Non-Buyers
  Opinions about LTC Insurance     FLTCIP   Private  Programs   Public  Programs  
Do you currently have LTC insurance1
   Yes 11%   11%
   No 89   89
Did you buy your LTC insurance after you heard about the current program2,3
   Yes 47   59
   No 36   41
Insurance companies sell adequate coverage for LTC services
   Strongly agree 5 4  
   Agree 42 51  
   Disagree 41 36  
   Strongly disagree   12 9  
  1. For this category, Public Programs include only the CALPERS and the Michigan databases.
  2. Responders to the FLTCIP surveys had the option to say "I did not know about the FLTCIP" and as a result the reported percentages do not add up to 100.
  3. For this category, Public Programs included only the CALPERS database.
TABLE A-20: Opinions about LTC Insurance Among Retired Non-Buyers
  Opinions about LTC Insurance     FLTCIP   Private  Programs   Public  Programs  
Do you currently have LTC insurance1
   Yes 20%   18%
   No 80   82
Did you buy your LTC insurance after you heard about the current program2,3
   Yes 13   40
   No 60   60
Insurance companies sell adequate coverage for LTC services
   Strongly agree 5 4  
   Agree 43 46  
   Disagree 39 36  
   Strongly disagree   13 14  
  1. For this category, Public Programs include only the CALPERS and the Michigan databases.
  2. Responders to the FLTCIP surveys had the option to say "I did not know about the FLTCIP" and as a result the reported percentages do not add up to 100.
  3. For this category, Public Programs included only the CALPERS database.
TABLE A-21: Decision Making Process of Active Buyers
  Decision Making Process     FLTCIP   Private  Programs   Public  Programs  
I would have bought LTC insurance if the current agency had not offered it1
   Yes   33% 55%  
   No 17 45  
I discussed LTC insurance purchase with:
a) spouse2
   Yes 63 65 68
   No 37 35 32
b) children2
   Yes 27* 12 11
   No 73 88 89
c) HR officer3
   Yes 13* 19 22
   No 87 81 78
d) colleagues/other relatives/friends2
   Yes 83* 46* 67*
   No 17 54 33
e) financial planner3
   Yes 22* 17* 8*
   No 78 83 92
f) insurance agent2
   Yes 15 10 12
   No 85 90 88
  1. Responders to the FLTCIP surveys had the option to say "Not sure" and as a result the reported percentages do not add up to 100.
  2. For this category, Public Programs include only the CALPERS and the Minnesota databases.
  3. For this category, Public Programs include only the Minnesota database.
TABLE A-22: Decision Making Process of Retired Buyers
  Decision Making Process     FLTCIP   Private  Programs   Public  Programs  
I discussed LTC insurance purchase with:
a) spouse1
   Yes   71%* 84%* 61%*
   No 29 16 39
b) children1
   Yes 40 50* 32
   No 60 50 68
c) colleagues/other relatives/friends1
   Yes 57* 48* 54
   No 43 52 46
d) financial planner
   Yes 22* 42*  
   No 78 58  
e) insurance agent1
   Yes 13 82* 19
   No 87 18 81
  1. For this category, Public Programs include only the CALPERS database.
TABLE A-23: People Who Had the Most Influence on Decision to Purchase of Insurance Among Active Buyers
  Decision Making Process     FLTCIP   Private  Programs  
Person who had most influence over insurance decision1
   Spouse 52 60
   Colleagues/other relatives/friends   31 19
   Financial planner 6 8
  1. There are different answer categories to this question in the different surveys and that is why the reported percentages do not add up to 100.
  TABLE A-24: People Who Had the Most Influence on Decision to Purchase of Insurance Among Retired Buyers  
  Decision Making Process     FLTCIP   Private  Programs  
Person who had most influence over insurance decision
   Spouse 69 43
   Colleagues/other relatives/friends   13 ---
   Children 8 ---
   Insurance agent --- 28
   Financial planner --- 12
TABLE A-25: Decision Making Process of Active Non-Buyers
  Decision Making Process     FLTCIP   Public  Programs  
How likely did you think it was that you would buy the FLTCIP when you requested the application
   Very likely 18% 23%
   Likely 52 57
   Not very likely 28 17
   Not at all likely   2 3
TABLE A-26: Decision Making Process of Retired Non-Buyers
  Decision Making Process     FLTCIP   Public  Programs  
How likely did you think it was that you would buy the FLTCIP when you requested the application
   Very likely 11% 15%
   Likely 43 52
   Not very likely 40 24
   Not at all likely   6 9
  TABLE A-27: Experience with the Application Process Among Active Non-Buyers  
  Experience with the Application Process     FLTCIP   Public  Programs  
Was understanding the application easy/difficult for you1
   Easy to understand the application 75% 78%
   Difficult to understand the application   25 22
  1. Percentages for the FLTCIP are based only on those who read the application.
  TABLE A-28: Experience with the Application Process Among Retired Non-Buyers  
  Experience with the Application Process     FLTCIP   Public  Programs  
Was understanding the application easy/difficult for you1
   Easy to understand the application 77% 79%
   Difficult to understand the application   23 21
  1. Percentages for the FLTCIP are based only on those who read the application.
TABLE A-29: Exposure to Promotional Activities Among Active Buyers
  Promotional Activities     FLTCIP   Public  Programs  
Did you find any of the following helpful1
a) read advertisements
   Found them to be helpful 45%* 30%
   Did not find them to be helpful   55 70
b) visit websites describing the federal program
   Found them to be helpful 69* 50
   Did not find them to be helpful 31 50
c) read general brochures
   Found them to be helpful 82 84
   Did not find them to be helpful 18 16
d) call toll-free number
   Found it to be helpful 33* 18
   Did not find it to be helpful 67 82
e) attend educational meetings at work
   Found them to be helpful 34* 43
   Did not find them to be helpful 66 57
f) view satellite broadcasts
   Found them to be helpful 17* 3
   Did not find them to be helpful 83 97
  1. The "Not helpful" category encompasses "No, did not do this", "Did it, but did not find it helpful" and "Did not know about this."
  TABLE A-30: Exposure to Promotional Activities Among Active Non-Buyers  
  Promotional Activities     FLTCIP   Public  Programs  
Did you find any of the following helpful
a) read advertisements
   Did not read advertisements 38%* 17%
   Yes, helpful 38 12
   Yes not helpful 13 7
   Did not know about the advertisements 11 64
b) visit websites describing the federal program
   Did not visit websites 51* 12
   Yes, helpful 32 9
   Yes not helpful 7 7
   Did not know abuot the websites 10 72
c) read general brochures
   Did not read general brochures 18* 26
   Yes, helpful 63 50
   Yes not helpful 14 15
   Did not know about the general brochures 5 10
d) attend educational meetings at work
   Did not attend educational meetings 66* 27
   Yes, helpful 18 20
   Yes not helpful 4 6
   Did not know about the educational meetings   12 48
e) view satellite broadcasts
   Did not view satellite broadcasts 76* 12
   Yes, helpful 5 2
   Yes not helpful 3 2
   Did not know about the satellite broadcasts 16 84
TABLE A-31: Exposure to Promotional Activities Among Retired Buyers
  Promotional Activities     FLTCIP   Public  Programs  
Did you find any of the following helpful1
a) read advertisements
   Found them to be helpful 57%* 13%
   Did not find them to be helpful   43 87
b) visit websites describing the federal program
   Found them to be helpful 40* 17
   Did not find them to be helpful 60 83
c) read general brochures
   Found them to be helpful 85* 60
   Did not find them to be helpful 15 40
d) call toll-free number
   Found it to be helpful 42* 21
   Did not find it to be helpful 58 79
  1. The "Not helpful" category encompasses "No, did not do this", "Did it, but did not find it helpful" and "Did not know about this."
TABLE A-32: Reasons for Buying LTC Insurance: Active Buyers
  Reasons for Buying     FLTCIP   Private  Programs   Public  Programs  
Single most important reason for buying LTC insurance1
   Avoid using own income 22% 23% 10%*
   Assure that care is affordable 28* 18 18
   Assure greater freedom in choosing service providers 5 3 10
   Avoid having to rely on relatives for care 19 19 31*
   Assure that spouse's standard of living will not decline if individual needs care   7 14 10
   Avoid relying on Medicaid 2 2 3
  1. Responders in all groups had indicated other reasons, in addition to the ones presented here, for which they bought LTC insurance. Presented here are only the common reasons and that is why the reported percentages do not add up to 100.
TABLE A-33: Reasons for Buying LTC Insurance: Retired Buyers
  Reasons for Buying     FLTCIP   Private  Programs   Public  Programs  
Single most important reason for buying LTC insurance1
   Avoid using own income 25%* 21% 12%
   Assure that care is affordable 23* 15 9
   Assure greater freedom in choosing service providers 3 5 14
   Avoid having to rely on relatives for care 17 19 33*
   Assure that spouse's standard of living will not decline if individual needs care   10 12 11
   Avoid relying on Medicaid 2 2 3
  1. Responders in all groups had indicated other reasons, in addition to the ones presented here, for which they bought LTC insurance. Presented here are only the common reasons and that is why the reported percentages do not add up to 100.
TABLE A-34: Comparison of Current LTC Insurance Program to Other Programs Among Active Buyers
  Reasons for Buying     FLTCIP   Private  Programs   Public  Programs  
Was the current FLTCIP compared to other programs1
   Yes   54%   33%
   No 46   66
Why was the current FLTCIP purchased instead of a different program2
a) lower rates
   Yes 31   39
   No 69   61
b) better benefits
   Yes 25   34
   No 75   66
c) recommended by others
   Yes 9   9
   No 91   91
d) easier to qualify
   Yes 40*   3
   No 60   97
e) easier to get benefits
   Yes 15*   4
   No 85   96
f) easier to understand coverage
   Yes 22*   5
   No 78   95
g) Federal Government sponsorship
   Yes 74*   13
   No 26   87
  1. Responders from CALPERS had the option of saying "Don't know" to this question and that is why the reported percentages in the Public Programs group do not add up to 100.
  2. For this category, Public Programs include only the CALPERS database.
TABLE A-35: Comparison of Current LTC Insurance Program to Other Programs Among Retired Buyers
  Reasons for Buying     FLTCIP   Private  Programs   Public  Programs  
Was the current FLTCIP compared to other programs1
   Yes   67% 68% 67%
   No 33 32 31
Why was the current FLTCIP purchased instead of a different program2
a) lower rates
   Yes 44   54
   No 56   46
b) better benefits
   Yes 33*   45
   No 67   55
c) recommended by others
   Yes 7   6
   No 93   94
d) easier to qualify
   Yes 18*   3
   No 82   97
e) easier to get benefits
   Yes 7*   0
   No 93   100
f) easier to understand coverage
   Yes 21*   9
   No 79   91
g) Federal Government sponsorship
   Yes 84*   17
   No 16   83
  1. Responders from CALPERS had the option of saying "Don't know" to this question and that is why the reported percentages in the Public Programs group do not add up to 100.
  2. For this category, Public Programs include only the CALPERS database.
  TABLE A-36: Reasons for Not Buying the Current LTC Insurance Program: Active Non-Buyers  
  Reasons for Not Buying     FLTCIP   Private  Programs   Public  Programs  
Were the following reasons not to buy the current FLTCIP:
a) do not think LTC services wil ever be needed1
   Yes, a reason 8% 25%* 14%
   No, not a reason   92 75 86
b) Medicare/Medicaid will pay for LTC services2
   Yes, a reason 16* 25* 1*
   No, not a reason 84 75 99
c) family/relatives will take care of individual3
   Yes, a reason 7 19* 12
   No, not a reason 93 81 88
d) FLTCIP is too expensive1
   Yes, a reason 66 72 48*
   No, not a reason 34 28 52
e) do not mind using own income to pay for LTC2
   Yes, a reason 15* 28* 2*
   No, not a reason 85 72 98
f) have other insurance like FEHB3
   Yes, a reason 13 24* 9
   No, not a reason 87 76 91
g) do not believe insurance companies will pay benefits
   Yes, a reason 18* 37  
   No, not a reason 82 63  
h) will buy the LTC insurance later1,4
   Yes, a reason 52 44 45
   No, not a reason 48 56 55
i) information about the FLTCIP too confusing
   Yes, a reason 22*   0
   No, not a reason 78   100
j) not happy with the features
   Yes 17*   1
   No 83   99
  1. For this category, Public Programs include only the CALPERS database.
  2. For this category, Public Programs include only the Michigan database.
  3. For this category, Public Programs include only the CALPERS and the Michigan databases.
  4. The "No, not a reason" category combines "Don't know" and "No, not a reason."
  TABLE A-37: Reasons for Not Buying the Current LTC Insurance Program: Retired Non-Buyers  
  Reasons for Not Buying     FLTCIP   Private  Programs   Public  Programs  
Were the following reasons not to buy the current FLTCIP:1
a) do not think LTC services wil ever be needed
   Yes, a reason 11% 34%* 18%
   No, not a reason   89 66 82
b) Medicare/Medicaid will pay for LTC services2
   Yes, a reason 14* 32* 3*
   No, not a reason 86 68 97
c) family/relatives will take care of individual3
   Yes, a reason 11* 21 23
   No, not a reason 89 79 77
d) FLTCIP is too expensive1
   Yes, a reason 62 84* 60
   No, not a reason 38 16 40
e) do not mind using own income to pay for LTC2
   Yes, a reason 25* 43* 6*
   No, not a reason 75 57 94
f) have other insurance like FEHB3
   Yes, a reason 19   13
   No, not a reason 81   87
g) do not believe insurance companies will pay benefits
   Yes, a reason 13* 44  
   No, not a reason 87 56  
h) will buy the LTC insurance later1
   Yes, a reason 22*   36
   No, not a reason 78   64
i) information about the FLTCIP too confusing
   Yes, a reason 19*   0
   No, not a reason 81   100
j) not happy with the features2
   Yes 16*   1
   No 84   99
  1. For this category, Public Programs include only the CALPERS database.
  2. For this category, Public Programs include only the Michigan database.
  3. For this category, Public Programs include only the CALPERS and the MetLife databases.
TABLE A-38: Three Most Important Common Reasons for Not Buying the Current Program Among Active Non-Buyers
  Reasons for Not Buying     FLTCIP   Private  Programs   Public  Programs  
Three most important reasons not to buy the current program1,2
   Cannot afford the current program 30% 44% 37%
   Current program is too expensive 24 --- ---
   Will buy the current program later 13 8 5
   I don't think I will ever need LTC insurance   --- 4 ---
   My family will take care for me --- --- 2
  1. For this category, Public Programs include only the CALPERS and the MetLife databases.
  2. In addition to the common among all files categories, 14% of ANB from Michigan responded that it is too early to plan and 16% of RNB from CALPERS responded that they want to use their money for other purposes.
TABLE A-39: Three Most Important Common Reasons for Not Buying the Current Program Among Retired Non-Buyers
  Reasons for Not Buying     FLTCIP   Private  Programs   Public  Programs  
Three most important reasons not to buy the current program1,2
   Cannot afford the current program 33% --- ---
   Current program is too expensive 15 45 38
   Will buy the current program later 7 --- ---
   I don't mind using own income/assets --- 7 4
   I don't think I will ever need LTC insurance   --- 4 ---
   I have other insurance --- --- 4
  1. For this category, Public Programs include only the CALPERS and the MetLife databases.
  2. In addition to the common among all files categories, 17% of RNB from Michigan responded that there is no reason for not buying and 14% of RNB from CALPERS responded that it is too confusing to know which is the right policy for them.
  TABLE A-40: Factors that Would Make Active Non-Buyers More Interested in Buying the Current Program  
  Factors     FLTCIP   Private  Programs   Public  Programs  
More interested in buying the current program if:
a) there was a guarantee that premiums will not increase in the future
   Agree 83% 91%  
   Disagree   17 9  
b) premiums were tax deductible1
   Agree 87* 93 97*
   Disagree 13 7 3
  1. For this category, Public Programs include only the CALPERS database.
  TABLE A-41: Factors that Would Make Retired Non-Buyers More Interested in Buying the Current Program  
  Factors     FLTCIP   Private  Programs   Public  Programs  
More interested in buying the current program if:
a) there was a guarantee that premiums will not increase in the future
   Agree 76% 79%  
   Disagree   24 21  
b) premiums were tax deductible1
   Agree 77 80 81
   Disagree 23 20 19
  1. For this category, Public Programs include only the CALPERS database.
This data brief was prepared under contract between the U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation, Office of Disability, Aging and Long-Term Care Policy (DALTCP) and Abt Associates. The brief was written by LifePlans, Inc. For additional information on this subject, or to view the other briefs in this series, you can visit the ASPE home page at http://aspe.hhs.gov, the DALTCP home page at http://aspe.hhs.gov/_/office_specific/daltcp.cfm or contact the ASPE Project Officer, Hunter McKay, at HHS/ASPE/DALTCP, Room 424E, H.H. Humphrey Building, 200 Independence Avenue, S.W., Washington, D.C. 20201, Hunter.McKay@hhs.gov.

LONG-TERM CARE INSURANCE FOR THE FEDERAL FAMILY: A STUDY OF BUYERS, NON-BUYERS AND NON-RESPONDENTS REPORTS AVAILABLE

A Comparison of Demographic and Attitudinal Characteristics Among Active and Retired Buyers, Non-Buyers and Non-Responders to the Federal Long-Term Care Insurance Program
HTML   http://aspe.hhs.gov/daltcp/reports/charcom.htm
PDF   http://aspe.hhs.gov/daltcp/reports/charcom.pdf
A Demographic and Attitudinal Profile of Buyers of the Federal Long-Term Care Insurance Program
HTML   http://aspe.hhs.gov/daltcp/reports/buyprof.htm
PDF   http://aspe.hhs.gov/daltcp/reports/buyprof.pdf
A Demographic and Attitudinal Profile of Non-Buyers of the Federal Long-Term Care Insurance Program
HTML   http://aspe.hhs.gov/daltcp/reports/nonbuyprof.htm
PDF   http://aspe.hhs.gov/daltcp/reports/nonbuyprof.pdf
A Demographic and Attitudinal Profile of Non-Responders of the Federal Long-Term Care Insurance Program
HTML   http://aspe.hhs.gov/daltcp/reports/nonresprof.htm
PDF   http://aspe.hhs.gov/daltcp/reports/nonresprof.pdf
Marketing Activities: A Comparative Analysis of Engagement and Participation Among Buyers, Non-Buyers and Non-Responders of the Federal Long-Term Care Insurance Program
HTML   http://aspe.hhs.gov/daltcp/reports/markact.htm
PDF   http://aspe.hhs.gov/daltcp/reports/markact.pdf
Multivariate Analysis of Buyers and Non-Buyers of the Federal Long-Term Care Insurance Program
HTML   http://aspe.hhs.gov/daltcp/reports/2004/FLTCIanal.htm
PDF   http://aspe.hhs.gov/daltcp/reports/2004/FLTCIanal.pdf
What We Know About Buyers and Non-Buyers of Private Long-Term Care Insurance: A Review of Studies
HTML   http://aspe.hhs.gov/daltcp/reports/LTCIlr.htm
PDF   http://aspe.hhs.gov/daltcp/reports/LTCIlr.pdf

LONG-TERM CARE INSURANCE FOR THE FEDERAL FAMILY: ANALYSIS OF FOLLOW-UP SURVEY DATA REPORTS AVAILABLE

A Comparative Analysis of the Socio-Demographic and Attitudinal Characteristics of Active Buyers and Non-Buyers of Long-Term Care Insurance in the Federal, Private and Public Sectors
HTML   http://aspe.hhs.gov/daltcp/reports/2004/LTCIchar.htm
PDF   http://aspe.hhs.gov/daltcp/reports/2004/LTCIchar.pdf
Does Geographic Location Make a Difference? A Comparative Analysis of the Socio-Demographic and Attitudinal Characteristics of Active Buyers and Non-Buyers of the Federal Long-Term Care Insurance Program
HTML   http://aspe.hhs.gov/daltcp/reports/FLTCIloc.htm
PDF   http://aspe.hhs.gov/daltcp/reports/FLTCIloc.pdf

To obtain a printed copy of this report, send the full report title and your mailing information to:

U.S. Department of Health and Human ServicesOffice of Disability, Aging and Long-Term Care PolicyRoom 424E, H.H. Humphrey Building200 Independence Avenue, S.W.Washington, D.C. 20201FAX:  202-401-7733Email:  webmaster.DALTCP@hhs.gov


RETURN TO:

Office of Disability, Aging and Long-Term Care Policy (DALTCP) Home [http://aspe.hhs.gov/_/office_specific/daltcp.cfm]Assistant Secretary for Planning and Evaluation (ASPE) Home [http://aspe.hhs.gov]U.S. Department of Health and Human Services Home [http://www.hhs.gov]

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