Does Geographic Location Make a Difference? A Comparative Analysis of the Socio-Demographic & Attitudinal Characteristics of Active Buyers & Non-Buyers of the Federal Long-Term Care Insurance Program

09/21/2004

U.S. Department of Health and Human Services

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

LifePlans, Inc.

September 21, 2004

PDF Version


This policy 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 Comparison of Active Buyers/Non-Buyers in the Federal, Private and Public Sectors. 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 eighth in a series of data briefs based on the information collected from active buyers and non-buyers of the federal program. The purpose of this data brief is to determine the extent to which the attitudes, opinions and motivations of individuals who purchased and did not purchase the federal LTC insurance policy are in part a function of geographic location. We are also interested in knowing how geography is associated with 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 geographic regions?
  • What are the attitudes and opinions about retirement planning among active buyers and non-buyers across geographic regions?
  • What are the similarities and/or differences in knowledge of LTC and insurance among individuals in each of the geographic regions?
  • Does the extent of exposure to marketing materials and messages vary by geographic region?

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 geographic segments are analyzed: (1) the "DC Area", which comprises the District of Columbia, Maryland, and Virginia; (2) "The East" which comprises all states to the east of Minnesota, Iowa, Missouri, Arkansas and Louisiana; and (3) "The West" which includes all states west of Wisconsin, Illinois, Kentucky, Tennessee and Mississippi. As shown, about 3,300 individuals participated in the various surveys of active and retired buyers and non-buyers. Table 1 below summarizes the sample sizes by market segment and geographic regions.

Table 1: Distribution of Sample by Market Segment and Geographic Region
  Washington, D.C. The East The West
Active Buyers 196 210 228
Active Non-Buyers 94 238 223
Retired Buyers 226 427 445
Retired Non-Buyers 76 257 243
Total 632 1,348 1,363

IV. FINDINGS

A. Demographic and Employment Characteristics

Figure 1 summarizes important demographic characteristics of the aggregate active sample of buyers and Figure 2 shows similar characteristics for active non-buyers. Across each of the regions the majority of buyers are married, male, have children living nearby and are highly educated. The average age of buyers across the regions varies between 52 and 54 years. There are statistically significant differences on three variables: income, assets, and education status. Buyers in Washington, D.C. are more likely to be college graduates and to have higher incomes and assets. In fact, the average income of buyers in the D.C. area is $98,261 compared to $81,710 in other regions of the country. Asset differentials are even greater; the average value of liquid assets of active buyers in D.C. is about $226,000 compared to roughly $186,000 in other areas of the country.

Figure 1: Demographic Characteristics of Active Buyers by Geographic Region
Source: Analysis of data from the FLTCIP, 2003.

As shown in Figure 2, the same pattern of results holds true for non-buyers. Again, the only significant demographic differences across regions are education status and income and asset levels. Non-buyers in Washington, D.C. are more likely to be educated and have significantly higher levels of income and assets -- $92,000 compared to $70,000 (income) and $180,000 compared to $158,000 (assets).

While there are no significant age differences between buyers and non-buyers across the regions, buyers tend to be more educated, wealthier and less likely to be married and have children living nearby. This could suggest that buyers may view having the insurance as compensating for their perceived lack of family support, which is still the largest contributor of long term care services.

Figure 2: Demographic Characteristics of Active Non-Buyers by Geographic Region
Source: Analysis of data from the FLTCIP, 2003.

The patterns observed for the active sample of buyers and non-buyers also holds true for the retired sample. In both cases, retiree buyers and non-buyers in Washington, D.C. have higher incomes and are better educated than those in the East and West. There are, however, no significant differences in asset levels. Again, retired buyers tend to be wealthier and more educated than non-buyers across all of the regions. Finally, in contrast to the sample of actives, there were no significant differences in the marital status of buyers and non-buyers by geographic regions. Retired buyers in the west, however, are the least likely to have children living nearby. (See Appendix for more detailed information on retirees.)

B. Attitudes and Experience with Retirement Planning and Long-Term Care

Previous briefs have established that federal employees tend to be active in planning for their retirement and understand the potential LTC risks associated with later life. Their life experiences with relatives or friends may also influence their decisions regarding the purchase of insurance. We asked a series of questions designed to illuminate key differences between buyers and non-buyers across the three geographic regions.

There are few differences across geographic regions among buyers regarding attitudes and opinions about retirement planning. Most (80%) have at least a general sense for how much to save to live comfortably in retirement, have thought about how to pay for LTC (96%) and believe having the insurance is important to retirement planning (97%). Geographic region is also not associated with non-buyers' attitudes about these issues. However, across all regions non-buyers are less likely to have thought about these issues or believe that insurance is an important part of a retirement plan. By and large, these same patterns hold true for the retired sample.

With few exceptions, geographic region is also unrelated to active employees' experience with LTC and attitudes about risk. Active buyers in Washington, D.C. are, however, somewhat less likely to know someone who has experienced financial hardship as a result of caring for an elderly relative. (Note that this population also is has higher levels of income and assets than buyers elsewhere.) Regarding retirees, buyers in the east are the most likely to have had caregiving experience -- 39% compared to 26% -- to have experienced financial hardship as a result of caring for an elderly relative -- 7% compared to 3% -- and know someone who has experienced financial hardship as a result of caring for an elderly relative -- 42% compared to 35%. There were no significant differences in experience across regions among non-buyers.

In past research, one factor that has distinguished buyers from non-buyers is their knowledge of potential payment sources for LTC. The insurance industry has invested heavily in educating consumers about LTC financing and there was an extensive educational campaign for the federal program. In order to gauge the effectiveness of that education, we asked buyers and non-buyers who they believe would pay for LTC if they ever needed it. There were no significant differences in responses among buyers. Among active non-buyers, however, there was an important geographic difference regarding knowledge of payment source for LTC services. Figure 3 summarizes results among active non-buyers and shows that those in the Washington, D.C. area are more likely to understand that they will have to use their own income and assets to pay for care if it is needed.

Figure 3: Active Non-Buyers View of Who Will Pay for Long-Term Care if it is Needed by Geographic Region
Source: Analysis of data from the FLTCIP, 2003.

Non-buyers in Washington, D.C. are also most likely to understand that Medicare or Medicaid will not pay for their LTC expenses. Finally, the further away from Washington, D.C. one gets, the more likely is there to be uncertainty about how LTC costs would be paid if services were needed. This finding may suggest that at least with respect to payment source knowledge, the education campaign in the Washington, D.C. area was more effective than in other parts of the country. Alternatively, it may be that given the higher levels of education, this is knowledge that these individuals had even before the marketing campaign began. These trends were not evident among the retiree sample.

Non-buyers of the federal program were also asked whether or not they currently had LTC insurance and whether they bought the insurance after they heard about the federal program. As shown in Figure 4, non-buyers of the federal program in the Washington, D.C. area are twice as likely to purchase LTC insurance as non-buyers in other geographic regions. Moreover, they are the most likely to have bought the insurance after hearing about the federal program. Somewhat surprisingly, of those non-buyers in the East and West who had insurance, a meaningful proportion of them -- between 17% and 25% -- had not heard about the federal program. This finding again suggests that the education and marketing campaign was either heavily targeted or particularly effective in the Washington, D.C. area. It also suggests that other carriers benefited from the wide net cast by the campaign: between one in five and one in ten non-buyers actually purchased a non-federal policy.

Figure 4: Active Non-Buyers Purchase of Long-Term Care Insurance by Geographic Region
Source: Analysis of data from the FLTCIP, 2003.

C. Experience with the Application Process and Exposure to Promotional Materials

Given some of the major differences in education level and the fact that the program was national in scope, one might have expected differences across geographic region in peoples' experience with the application process. In a prior brief, we demonstrated that non-buyers had a more difficult time understanding the application materials and getting their questions answered than did buyers. This finding holds true across all geographic regions. However, among active buyers, those in the Washington, D.C. area seemed to have an easier time understanding the application and also found it easier to obtain answers to their questions about the program (see Figure 5).

Figure 5: Active Buyers Experience with Application Process by Geographic Region
Source: Analysis of data from the FLTCIP, 2003.

The program sponsors -- Long Term Care Partners -- invested significant resources in the marketing and education campaign. They did so through sponsorship of a variety of promotional activities such as educational meetings, satellite broadcasts, advertisements, articles, brochures, web sites, toll-free numbers, and more. This was done to assure maximum exposure to the program. As outlined in a previous brief, we found that non-buyers were less likely to have actively engaged in activities designed to educate and reinforce the need for insurance protection against the cost of LTC. This is fairly typical across the geographic regions. The extent of non-buyer exposure to educational activities does not vary by geographic region except when it comes to visiting the website and reading articles about the program; non-buyers in Washington, D.C. are far more likely to have visited the website (62%) than are non-buyers elsewhere (34%). They are also more likely to have read newspaper articles about the program than non-buyers elsewhere -- 57% compared to 29%.

The same can be said of buyers: for the most part, exposure does not vary by geographic region. The exception is that compared to buyers in the West and in the D.C. area, those in the East are the least likely to talk to federal colleagues about the program. On the other hand, they are more likely to have read newspaper articles than non-buyers elsewhere. There are few significant variations in exposure by geographic region for the retiree population. Again, retirees living in Washington, D.C. are far more likely to have read newspaper articles about the program than retirees elsewhere.

V. CONCLUSIONS

For the most part, there are few geographic differences in the attitudes and opinions of buyers and non-buyers of the federal program regarding retirement planning and LTC. There are, however, a number of important socio-demographic differences (i.e., those living in the Washington, D.C. area tend to be more highly educated and wealthier), as well as those relating to experience with LTC, especially among retirees. Retirees in the D.C. area have more experience caregiving and are more likely to either know someone who has had, or to have personally experienced, financial hardship as a result of LTC.

Non-buyers in the Washington, D.C. area are also more likely to have purchased a LTC insurance policy not sponsored by the Federal Government than non-buyers in other areas of the country. Moreover, the fact that a meaningful proportion of non-buyers in the East and West who had purchased other policies had not even heard of the federal program, suggests that the marketing campaign may not have been as effective in these areas. This is somewhat supported by the finding that non-buyers outside of Washington, D.C. are also less likely to have been involved in certain promotional activities.

The analysis presented here has focused to a large extent on observed differences between geographic regions on selected variables. It is important to note that on the vast majority of parameters examined, geography is not a particularly important variable.

APPENDIX

Notes for Tables

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 Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Socio-Demographic Characteristics Active Buyers DC Active Buyers East Active Buyers West Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
Average age 53 52 54 52 54 54
   Less than 50 27 31 22 40 30 32
   50 to 54 26 23 26 24 26 23
   55 to 59 27 26 25 18 20 20
   60 to 64 13 15 18 8 9 13
   65 and over 7 5 9 10 15 12
Gender
   Male 46 50 53 57 60 58
   Female 54 50 47 43 40 42
Marital status
   Never Married 22 17 13 11 9 9
   Married 57 61 59 70 66 73
   Divorced/separated 15 15 24 16 20 14
   Widowed 4 5 3 2 4 3
   Domestic Partner 2 2 1 1 1 1
Presence of children living within 25 miles
   Yes 41 43 42 53 63 59
   No 59 57 58 47 37 41
Education level
   Less than high graduate 0 0 0 0 1 0
   High school graduate 4 9 4 7 17 12
   Technical/ trade/ business school 2 4 7 5 7 4
   Some college 15 20 25 23 28 37
   College graduate1 36 79* 34 67 39 64 20 65* 29 47 29 47
   Graduate degree 43 33 25 45 18 18
Average income2 $98,261* $81,714 $81,709 $92,386* $70,692 $69,603
   Less than $15,000 0 0 0 0 1 1
   $15,000 to $24,999 0 1 1 1 1 1
   $25,000 to $34,999 3 3 3 3 4 7
   $35,000 to $39,999 1 2 2 2 7 7
   $40,000 to $49,999 2 11 10 5 15 16
   $50,000 to $59,999 3 12 11 8 15 12
   $60,000 to $69,999 10 10 12 7 10 11
   $70,000 to $74,999 7 8 8 5 7 7
   $75,000 to $99,999 21 23 24 20 22 18
   $100,000 to $124,999 17 15 13 23 10 14
   $125,000 or more 36 15 16 26 8 6
Average liquid assets2 $184,919 $190,856 $225,833 $180,920 $162,053 $153,378
   Less than $10,000 4 9 7 13 18 17
   $10,000 to $19,999 3 3 4 5 10 7
   $20,000 to $29,999 5 6 4 3 8 8
   $30,000 to $49,999 10 8 12 9 13 12
   $50,000 to $74,999 7 12 19 8 14 11
   $75,000 to $99,999 8 10 5 6 7 9
   $100,000 to $124,999 8 9 9 7 7 8
   $125,000 to $149,999 4 7 5 8 4 6
   $150,000 to $199,999 13 6 9 3 5 4
   $200,000 to $249,999 10 10 9 2 3 6
   $250,000 and above 28 20 17 36 11 12
Home ownership
   Yes 90 91 90 87 83 89
   No 10 9 10 13 17 11
  1. Here, having a college degree or better is tested for significance against not having a college degree.
  2. Averages were calculated by taking the midpoints of the ranges.
TABLE A-2: Socio-Demographic Characteristics of Retired Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Socio-Demographic Characteristics Retired Buyers DC Retired Buyers East Retired Buyers West Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
Average age 65* 66 66* 70 71 72
   Less than 50 3 1 1 3 2 2
   50 to 54 3 4 2 5 3 2
   55 to 59 18 13 12 10 7 7
   60 to 64 23 24 25 8 14 10
   65 and over 53 58 60 74 74 79
Gender
   Male 71 71 69 68 71 79
   Female 29 29 31 32 29 21
Marital status
   Never Married 9 9 8 4 5 3
   Married 71 67 69 67 69 73
   Divorced/separated 8 8 11 10 9 7
   Widowed 10 14 11 19 17 17
   Domestic Partner 2 2 1 0 0 0
Presence of children living within 25 miles
   Yes 59* 52 48* 60 55 54
   No 42 48 52 40 45 46
Education level
   Less than high graduate 0 2 0 0 4 5
   High school graduate 11 18 13 12 19 16
   Technical/ trade/ business school 4 6 5 7 8 8
   Some college 17 21 24 31 26 32
   College graduate1 35* 28* 31 32 24 23
   Graduate degree 33 25 27 18 19 16
Average income2 $79,825* $62,330 $59,547 $63,918* $49,522 $47,304
   Less than $15,000 1 1 0 2 3 5
   $15,000 to $24,999 1 3 4 6 12 16
   $25,000 to $34,999 2 11 10 9 15 10
   $35,000 to $39,999 4 10 9 12 13 17
   $40,000 to $49,999 12 15 17 12 18 16
   $50,000 to $59,999 13 14 18 9 11 13
   $60,000 to $69,999 10 13 12 7 7 9
   $70,000 to $74,999 6 9 7 12 5 2
   $75,000 to $99,999 19 16 15 19 12 6
   $100,000 to $124,999 17 6 4 3 2 4
   $125,000 or more 15 4 4 9 2 2
Average liquid assets2 $126,798 $204,151 $212,063 $181,607 $170,558 $162,813
   Less than $10,000 4 3 4 3 12 12
   $10,000 to $19,999 1 4 3 7 5 7
   $20,000 to $29,999 2 2 4 6 6 8
   $30,000 to $49,999 6 9 7 10 12 13
   $50,000 to $74,999 9 9 10 7 10 8
   $75,000 to $99,999 7 9 6 7 7 5
   $100,000 to $124,999 9 7 8 10 7 4
   $125,000 to $149,999 4 6 6 4 5 5
   $150,000 to $199,999 6 8 11 9 7 8
   $200,000 to $249,999 8 7 8 4 5 8
   $250,000 and above 44 36 33 33 24 22
Home ownership
   Yes 94 92 92 90 90 91
   No 6 8 8 10 10 9
  1. Here, having a college degree or better is tested for significance against not having a college degree.
  2. Averages were calculated by taking the midpoints of the ranges.
TABLE A-3: Attitudes and Opinions About Retirement Planning and Long-Term Care Among Active Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Attitudes and Opinions Active Buyers DC Active Buyers East Active Buyers West Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
Determined how much to save to live comfortably in retirement
   Yes, a definite sense1 25 20 21 14 17 15
   Yes, a general sense 56 62 62 61 44 53
   No 18 17 16 22 36 31
   Do not plan to retire 1 1 1 3 3 1
Thought given to paying for LTC expenses
   A great deal 65 63 59 25 21 21
   Some 32 33 37 54 50 49
   Not much thought 3 4 4 21 21 26
   No thought at all 0 0 0 0 8 4
How important is LTC insurance to retirement planning
   Very important 61 61 60 24 26 23
   Somewhat important 36 36 38 57 51 56
   Not very important 3 2 2 13 19 12
   Not at all important 0 0 0 1 0 2
   Have not started planning 0 1 0 5 4 7
LTC insurance programs sold today will cover the cost of LTC services needed in the future
   Strongly agree 10 9 9 1 2 5
   Agree 74 71 72 47 34 38
   Disagree 13 17 17 42 53 49
   Strongly disagree 3 3 2 10 11 8
How would LTC costs be paid2
   Medicaid 1 4 2 3 3 4
   Medicare 7 10 8 5 11 10
   Medigap Supplement Policy 1 2 1 0 1 0
   Own health insurance or retiree health care plan 24 23 23 35 30 35
   Own income 39 35 38 35* 23 19*
   Children will help pay 1 1 1 0 0 1
   Other 3 2 3 4 4 2
   LTC insurance 6 7 6 1 1 3
   Don't know3 18 16 18 17 27 24
  1. Here, having a general or a definite sense of how much needs to be saved were combined and tested as a single yes response. Those who did not plan to retire were removed from the analysis.
  2. Active buyers were asked whether they worried about how to pay for LTC services before they purchased the FLTCIP and how they would pay for LTC in the absence of their LTC policy.
  3. This response category was tested for significance and it was found not to be significant.
TABLE A-4: Attitudes and Opinions About Retirement Planning and Long-Term Care Among Retired Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Attitudes and Opinions Retired Buyers DC Retired Buyers East Retired Buyers West Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
Determined how much to save to live comfortably in retirement
   Yes, a definite sense1 32 28 25 18 15 19
   Yes, a general sense 51 59 61 47 58 50
   No 17 13 14 35 27 31
Thought given to paying for LTC expenses
   A great deal 68 68 62 27 25 28
   Some 30 30 35 53 59 52
   Not much thought 2 2 2 18 12 18
   No thought at all 0 0 1 2 4 2
How important is LTC insurance to retirement planning
   Very important 58 62 55 14 21 21
   Somewhat important 40 37 41 47 42 48
   Not very important 2 1 4 23 24 19
   Not at all important 0 0 0 8 6 3
   Have not started planning 0 0 0 8 7 9
LTC insurance programs sold today will cover the cost of LTC services needed in the future
   Strongly agree 8 13* 8* 6 3 3
   Agree 72 67 70 29 32 34
   Disagree 19 18 19 47 47 47
   Strongly disagree 1 2 3 18 18 16
How would LTC costs be paid2
   Medicaid 2 2 1 2 3 1
   Medicare 6 5 7 13 14 16
   Medigap Supplement Policy 0 1 1 2 2 2
   Own health insurance or retiree health care plan 14 16 17 30 22 18
   Own income 62 57 54 43 42 42
   Children will help pay 0 0 0 0 1 0
   Other 1 2 2 4 2 2
   LTC insurance 8 9 9 0 1 2
   Don't know3 7 8 9 6 13 17
  1. Here, having a general or a definite sense of how much needs to be saved were combined and tested as a single yes response. Those who did not plan to retire were removed from the analysis.
  2. Retired buyers were asked whether they worried about how to pay for LTC services before they purchased the FLTCIP and how they would pay for LTC in the absence of their LTC policy.
  3. This response category was tested for significance and it was found not to be significant.
TABLE A-5: Experience with Long-Term Care Among Active Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Experiences with LTC Active Buyers DC Active Buyers East Active Buyers West Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
Parent needed LTC
   Yes 43 41 43 53 48 41
   No 57 59 57 47 52 59
The repondent has been a caregiver
   Yes 24 32 24 17 24 28
   No 76 68 76 83 76 72
The respondent knew someone who used most of his/her assets to pay for LTC
   Yes 45* 58* 55 44 47 52
   No 55 42 46 56 53 48
The respondent has experienced financial hardship as a result of caring for an elderly relative
   Yes 4 10 5 3 11 9
   No 96 90 95 97 89 91
The respondent knew someone who has experienced financial hardship as a result of caring for an elderly relative
   Yes 32* 49 48 34 41 44
   No 68 51 52 66 59 56
TABLE A-6: Experience with Long-Term Care Among Retired Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Experiences with LTC Retired Buyers DC Retired Buyers East Retired Buyers West Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
Parent needed LTC
   Yes 34 39 43 49 49 52
   No 66 61 57 51 51 48
The repondent has been a caregiver
   Yes 28 39* 24 39 43 32
   No 72 61 76 61 57 68
The respondent knew someone who used most of his/her assets to pay for LTC
   Yes 60 59 51* 49 52 51
   No 40 41 49 51 48 49
The respondent has experienced financial hardship as a result of caring for an elderly relative
   Yes 4 7* 3* 4 12 7
   No 96 93 97 96 88 93
The respondent knew someone who has experienced financial hardship as a result of caring for an elderly relative
   Yes 37 42* 33* 33 37 38
   No 63 58 67 67 63 62
TABLE A-7: Self-Assessed Risk of Needing LTC Among Active Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Type of LTC Active Buyers DC Active Buyers East Active Buyers West Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
How likely is it that:
a) the respondent thinks he/she will need help with everyday activities such as bathing and dressing
   Very likely 10 12 14 5 12 10
   Likely 19 16 15 9 15 14
   Somewhat likely 40 45 46 36 35 35
   Not very likely 25 23 21 38 30 28
   Not at all likely 6 4 4 12 8 13
b) the respondent thinks he/she will need home care services for more than three months
   Very likely 12 15 13 5 11 9
   Likely 19 16 21 11 15 14
   Somewhat likely 45 49 41 43 37 38
   Not very likely 21 16 22 29 30 28
   Not at all likely 3 4 3 12 7 11
c) the respondent thinks he/she will need nursing home care for more than three months
   Very likely 11 13 13 8 11 9
   Likely 17 17 16 9 13 16
   Somewhat likely 41 43 42 40 32 32
   Not very likely 25 20 24 31 34 29
   Not at all likely 6 7 5 12 10 14
d) the respondent thinks he/she will need care provided in assisted living facility for more than three months
   Very likely 16 17 16 13 12 9
   Likely 21 21 22 16 16 17
   Somewhat likely 43 41 37 42 34 35
   Not very likely 17 16 22 21 29 28
   Not at all likely 3 5 3 8 9 11
TABLE A-8: Self-Assessed Risk of Needing LTC Among Retired Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Type of LTC Retired Buyers DC Retired Buyers East Retired Buyers West Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
How likely is it that:
a) the respondent thinks he/she will need help with everyday activities such as bathing and dressing
   Very likely 4* 9* 7 6 14 13
   Likely 17 19 15 14 15 21
   Somewhat likely 47 47 43 32 40 37
   Not very likely 24 20 28 33 26 20
   Not at all likely 8 5 7 14 5 9
b) the respondent thinks he/she will need home care services for more than three months
   Very likely 5 7 7 6 12 13
   Likely 20 20 15 15 16 20
   Somewhat likely 49 47 47 39 40 38
   Not very likely 19 21 24 23 26 20
   Not at all likely 7 5 7 17 6 9
c) the respondent thinks he/she will need nursing home care for more than three months
   Very likely 4 7 6 6 12 11
   Likely 17 18 14 12 14 14
   Somewhat likely 43 45 44 43 35 37
   Not very likely 28 25 27 14 31 27
   Not at all likely 8 5 9 25 8 11
d) the respondent thinks he/she will need care provided in assisted living facility for more than three months
   Very likely 7 10 8 4 13 10
   Likely 21 20 20 16 15 13
   Somewhat likely 47 46 44 35 36 45
   Not very likely 18 19 22 27 28 22
   Not at all likely 7 5 6 18 8 10
TABLE A-9: Opinions about Long-Term Care Insurance Among Active Buyers by Geographic Location (D.C. vs. East vs. West)
Opinions about LTC Insurance Active Buyers DC Active Buyers East Active Buyers West
What % of your expenses do you expect your LTC insurance to pay
   100% 12 17 9
   61%-99% 67 67 70
   40%-60% 19 13 17
   35%-39% 1 2 4
   <25% 1 1 0
TABLE A-10: Opinions about Long-Term Care Insurance Among Retired Buyers by Geographic Location (D.C. vs. East vs. West)
Opinions about LTC Insurance Retired Buyers DC Retired Buyers East Retired Buyers West
What % of your expenses do you expect your LTC insurance to pay
   100% 8 10 6
   61%-99% 65 66 70
   40%-60% 24 20 19
   35%-39% 3 3 4
   <25% 0 1 1
TABLE A-11: Opinions about Long-Term Care Insurance Among Active Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Opinions about LTC Insurance Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
Do you currently have LTC insurance
   Yes 19* 8* 10
   No 81 92 90
Did you buy your LTC insurance after you heard about the FLTCIP1
   Yes2 72* 46 31*
   No 28 37 44
   I did not know about the FLTCIP 0 17 25
  1. This question was only asked of those people who stated that they currently had LTC insurance; therefore the percentage of people who said they did not know about the FLTCIP are only of those non-buyers and non-responders who have LTC insurance.
  2. The distribution for this question is based on the answers of 18 Active Non-Buyers in the D.C. area, 30 Active Non-Buyers in the East and 32 Active Non-Buyers in the West.
TABLE A-12: Opinions about Long-Term Care Insurance Among Retired Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Opinions about LTC Insurance Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
Do you currently have LTC insurance
   Yes 30 18 19
   No 70 82 81
Did you buy your LTC insurance after you heard about the FLTCIP1
   Yes2 7 15 14
   No 79 58 55
   I did not know about the FLTCIP 14 27 31
  1. This question was only asked of those people who stated that they currently had LTC insurance; therefore the percentage of people who said they did not know about the FLTCIP are only of those non-buyers and non-responders who have LTC insurance.
  2. The distribution for this question is based on the answers of 29 Retired Non-Buyers in the D.C. area, 90 Retired Non-Buyers in the East and 100 Retired Non-Buyers in the West.
TABLE A-13: Decision Making Process of Active Buyers by Geographic Location (D.C. vs. East vs. West)
Decision Making Process Active Buyers DC Active Buyers East Active Buyers West
I considered buynig LTC insurance prior to the federal offering
   Yes 57 56 61
   No 43 44 39
I would have bought LTC insurance if the Federal Government had not offered it
   Yes 34 32 33
   No 15 17 17
   Not sure 51 51 50
TABLE A-14: Decision Making Process of Retired Buyers by Geographic Location (D.C. vs. East vs. West)
Decision Making Process Active Buyers DC Active Buyers East Active Buyers West
I considered buynig LTC insurance prior to the federal offering
   Yes 67 75 72
   No 33 25 28
I would have bought LTC insurance if the Federal Government had not offered it
   Yes 40 44 40
   No 12 13 14
   Not sure 48 43 46
TABLE A-15: Decision Making Process of Active Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Decision Making Process Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
How seriously was buying the FLTCIP considered
   Very seriously 39 33 33
   Somewhat seriously 41 42 40
   Not very seriously 13 16 16
   Not seriously at all 7 5 6
   Did not consider 0 4 5
How likely did you think it was that you would buy the FLTCIP when you requested the application
   Very likely 18 18 17
   Likely 57 52 50
   Not very likely 25 28 30
   Not at all likely 0 2 3
TABLE A-16: Decision Making Process of Retired Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Decision Making Process Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
How seriously was buying the FLTCIP considered
   Very seriously 32 25 24
   Somewhat seriously 38 39 36
   Not very seriously 15 20 22
   Not seriously at all 7 5 7
   Did not consider 8 11 11
How likely did you think it was that you would buy the FLTCIP when you requested the application
   Very likely 13 13 8
   Likely 41 44 43
   Not very likely 42 36 44
   Not at all likely 4 7 5
TABLE A-17: Experience with the Application Process Among Active Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Experience with the Application Process Active Buyers DC Active Buyers East Active Buyers West Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
Was the following easy/difficult for you:
a) getting an application1
   Did not get an application 0 0 0 14 21 25
   Did get an application 100 100 100 86 79 75
   Easy to get an application 98 99 97 99 94 97
   Difficult to get an application 2 1 3 1 6 3
b) understanding the application1
   Did not attempt to understand the application 0 0 0 27 32 35
   Did attempt to understand the application 100 100 100 73 68 65
   Easy to understand the application 97* 91* 94 80 70 76
   Difficult to understand the application 3 9 6 20 30 24
c) answering health questions1
   Did not answer health questions 0 0 0 42 38 44
   Did answer health questions 100 100 100 58 62 56
   Easy to answer health questions 99 97 98 83 76 81
   Difficult to answer health questions 1 3 2 17 24 19
d) reading the application materials1
   Did not read the application materials 0 0 0 30 31 31
   Did read the application materials 100 100 100 70 69 69
   Easy to read the application materials 88 84 82 74 67 70
   Difficult to read the application materials 12 16 18 26 33 30
Easy/difficult to obtain answers to questions about the federal program
   Very easy 40* 29 28* 23 17 22
   Easy 56 65 63 56 52 48
   Difficult 3 4 8 15 28 24
   Very difficult 1 2 1 6 3 6
  1. The responses for "easy" and "difficult" are calculated on the basis of only those respondents who did the specific activity.
TABLE A-18: Experience with the Application Process Among Retired Buyers and Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Experience with the Application Process Retired Buyers DC Retired Buyers East Retired Buyers West Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
Was the following easy/difficult for you:
a) getting an application1
   Did not get an application 0 0 0 23 25 34
   Did get an application 100 100 100 77 75 66
   Easy to get an application 100 98 98 96 96 96
   Difficult to get an application 0 2 2 4 4 4
b) understanding the application1
   Did not attempt to understand the application 0 0 0 31 30 39
   Did attempt to understand the application 100 100 100 69 70 61
   Easy to understand the application 93 95 93 80 75 78
   Difficult to understand the application 7 5 7 20 25 22
c) answering health questions1
   Did not answer health questions 0 0 0 38 39 48
   Did answer health questions 100 100 100 62 61 52
   Easy to answer health questions 93 92 90 80 76 75
   Difficult to answer health questions 7 8 10 20 24 25
d) reading the application materials1
   Did not read the application materials 0 0 0 31 34 44
   Did read the application materials 100 100 100 69 66 56
   Easy to read the application materials 84 86 82 73 74 66
   Difficult to read the application materials 16 14 18 27 26 34
Easy/difficult to obtain answers to questions about the federal program
   Very easy 30 40* 31* 22 15 15
   Easy 65 57 65 56 58 63
   Difficult 4 3 3 16 24 18
   Very difficult 1 0 1 6 3 4
  1. The responses for "easy" and "difficult" are calculated on the basis of only those respondents who did the specific activity.
TABLE A-19: Awareness about the Federal Program Among Retired Non-Responders by Geographic Location (D.C. vs. East vs. West)
Awareness about the Federal Program Retired Non-Responders DC Retired Non-Responders East Retired Non-Responders West
Are you aware that the Federal Government is sponsoring a LTC insurance program
   Yes 46 29 32
   No 54 71 68
TABLE A-20: Exposure to Promotional Activities Among Active Buyers and Non-Buyers by Geographic Location (DC vs. East vs. West)
Promotional Activities Active Buyers DC Active Buyers East Active Buyers West Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
Did you do any of the following:
a) talk to colleagues about the federal program1
   Did not talk to colleagues 24* 36* 33 40 52 48
   Did talk to colleagues 76 64 67 60 48 52
   Found it to be helpful 78* 73 65* 50 59 57
   Did not find it to be helpful 22 27 35 50 59 57
b) talk to human resource representative1
   Did not talk to human resource representative 80 87 82 73 83 81
   Did talk to human resource representative 20 13 18 27 17 19
   Found it to be helpful2 84 80 85 64 81 62
   Did not find it to be helpful 16 20 15 36 19 38
c) attend educational meetings1
   Did not attend educational meetings 56 65 58 52 68 69
   Did not know about the educational meetings 2 7 6 7 10 15
   Did attend educational meetings 42 28 36 41 22 16
   Found them to be helpful 95 91 95 84* 80 76
   Did not find them to be helpful 5 9 5 16 20 24
d) view satellite broadcasts1
   Did not view satellite broadcasts 70 71 72 79 78 73
   Did not know about the satellite broadcasts 9 11 10 11 16 17
   Did view satellite broadcasts 21 18 18 10 6 10
   Found them to be helpful3 93 83 95 56 67 62
   Did not find them to be helpful 7 17 5 44 33 38
e) read "Get Smart About Your Future"1
   Did not read "Get Smart About Your Future" 27 23 32 27 35 35
   Did not know about "Get Smart About Your Future" 4 9 8 11 9 12
   Did read "Get Smart About Your Future" 69 68 60 62 56 53
   Found it to be helpful 95 94 96 81 86 90
   Did not find it to be helpful 5 6 4 19 14 10
f) read advertisements1
   Did not read advertisements 46 40 42 31 41 37
   Did not know about the advertisements 5 7 10 9 8 14
   Did read advertisements 49 53 48 60 51 49
   Found them to be helpful 86 89 93 66 80 75
   Did not find them to be helpful 14 11 7 34 20 25
g) visit websites describing the federal program1
   Did not visit websites describing the federal program 20 26 29 34* 58 51
   Did not know about the websites describing the federal program 1 4 4 4 11 13
   Did visit websites describing the federal program 79 70 67 62 31 36
   Found them to be helpful 97 98 97 81 83 86
   Did not find them to be helpful 3 2 3 19 17 14
h) read banner ads1
   Did not read banner ads 72 68 78 70 73 72
   Did not know about the banner ads 10 16 11 9 16 17
   Did read banner ads 18 16 11 21 11 11
   Found them to be helpful4 59 61 72 42 60 63
   Did not find them to be helpful 41 39 28 58 40 37
i) read newspaper articles1
   Did not read newspaper articles 48* 62 63 38* 55 56
   Did not know about the newspaper articles 4 10 9 5 15 16
   Did read newspaper articles 48 28 28 57 30 28
   Found them to be helpful 92 86 86 71 68 68
   Did not find them to be helpful 8 14 14 29 32 32
j) read general brochures1
   Did not read general brochures 12 13 17 14 20 19
   Did not know the general brochures 1 2 1 1 5 7
   Did read general brochures 87 85 82 85 75 74
   Found them to be helpful 97 95 99 82 83 81
   Did not find them to be helpful 3 5 1 18 17 19
k) call toll-free number1
   Did not call a toll-free number 59 59 62 72 76 76
   Did not know about the toll-free number 5 5 3 6 10 12
   Did call a toll-free number 36 36 35 22 14 12
   Found it to be helpful5 93 96 94 75 75 64
   Did not find it to be helpful 7 4 6 25 25 36
  1. The responses for "helpful" and "not helpful" are calculated on the basis of only those respondents who did the specific activity.
  2. The distribution for this question is based on the answers of 37 Active Buyers in the DC area, 25 Active Buyers in the East and 39 Active Buyers in the West. The distribution for this question is based on the answers of 25 Active Non-Buyers in the DC area, 36 Active Non-Buyers in the East and 37 Active Non-Buyers in the West.
  3. The distribution for this question is based on the answers of nine Active Non-Buyers in the DC area, 15 Active Non-Buyers in the East and 21 Active Non-Buyers in the West.
  4. The distribution for this question is based on the answers of 32 Active Buyers in the DC area, 31 Active Buyers in the East and 25 Active Buyers in the West. The distribution for this question is based on the answers of 19 Active Non-Buyers in the DC area, 25 Active Non-Buyers in the East and 24 Active Non-Buyers in the West.
  5. The distribution for this question is based on the answers of 20 Active Non-Buyers in the DC area, 32 Active Non-Buyers in the East and 25 Active Non-Buyers in the West.
TABLE A-21: Exposure to Promotional Activities Among Retired Buyers and Non-Buyers by Geographic Location (DC vs. East vs. West)
Promotional Activities Retired Buyers DC Retired Buyers East Retired Buyers West Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
Did you do any of the following:
a) talk to colleagues about the federal program1
   Did not talk to colleagues 64* 74 76 75 80 80
   Did talk to colleagues 36 26 24 25 20 20
   Found it to be helpful2 85 79 75 67 69 64
   Did not find it to be helpful 15 21 25 33 31 36
b) talk to human resource representative1
   Did not talk to human resource representative 97 97 97 94 97 96
   Did talk to human resource representative 3 3 3 6 3 4
   Found it to be helpful3 83 100 82 50 57 50
   Did not find it to be helpful 17 0 18 50 43 50
c) read "Get Smart About Your Future"1
   Did not read "Get Smart About Your Future" 26 26 30 37 42 39
   Did not know about "Get Smart About Your Future" 8 6 6 13 12 12
   Did read "Get Smart About Your Future" 66 68 64 50 46 49
   Found it to be helpful 97 96 98 86 84 89
   Did not find it to be helpful 3 4 2 14 16 11
d) read advertisements1
   Did not read advertisements 37 36 37 39 44 47
   Did not know about the advertisements 5 3 5 10 12 10
   Did read advertisements 58 61 58 51 44 43
   Found them to be helpful 92 95 95 75 77 82
   Did not find them to be helpful 8 5 5 25 23 18
e) visit websites describing the federal program1
   Did not visit websites describing the federal program 54 57 51 80 76 76
   Did not know about the websites describing the federal program 3 4 4 7 12 11
   Did visit websites describing the federal program 43 39 45 13 12 13
   Found them to be helpful4 97 97 96 100 90 86
   Did not find them to be helpful 3 3 4 0 10 14
f) read banner ads1
   Did not read banner ads 86 86 84 87 82 81
   Did not know about the banner ads 7 8 8 10 13 16
   Did read banner ads 7 6 8 3 5 3
   Found them to be helpful5 53 68 82 50 64 57
   Did not find them to be helpful 47 32 18 50 36 43
g) read newspaper articles1
   Did not read newspaper articles 39* 64 64 42* 52 61*
   Did not know about the newspaper articles 5 6 5 1 10 9
   Did read newspaper articles 56 30 31 57 38 30
   Found them to be helpful 94 93 90 83 65 76
   Did not find them to be helpful 6 7 10 17 35 24
h) read general brochures1
   Did not read general brochures 10 13 13 27 26 25
   Did not know the general brochures 1 1 2 0 7 6
   Did read general brochures 89 86 85 73 67 69
   Found them to be helpful 100 98 98 81 84 87
   Did not find them to be helpful 0 2 2 19 16 13
i) call toll-free number1
   Did not call a toll-free number 61 56 53 84 77 80
   Did not know about the toll-free number 2 1 3 3 9 7
   Did call a toll-free number 37 43 44 13 14 13
   Found it to be helpful6 97 100* 96* 78 76 76
   Did not find it to be helpful 3 0 4 22 24 24
  1. The responses for "helpful" and "not helpful" are calculated on the basis of only those respondents who did the specific activity.
  2. The distribution for this question is based on the answers of 18 Retired Non-Buyers in the DC area, 45 Retired Non-Buyers in the East and 44 Retired Non-Buyers in the West.
  3. The distribution for this question is based on the answers of six Retired Buyers in the DC area, 12 Retired Buyers in the East and 11 Retired Buyers in the West. The distribution for this question is based on the answers of four Retired Non-Buyers in the DC area, seven Retired Non-Buyers in the East and eight Retired Non-Buyers in the West.
  4. The distribution for this question is based on the answers of nine Retired Non-Buyers in the DC area, 29 Retired Non-Buyers in the East and 29 Retired Non-Buyers in the West.
  5. The distribution for this question is based on the answers of 17 Retired Buyers in the DC area, 25 Retired Buyers in the East and 34 Retired Buyers in the West. The distribution for this question is based on the answers of two Retired Non-Buyers in the DC area, 11 Retired Non-Buyers in the East and seven Retired Non-Buyers in the West.
  6. The distribution for this question is based on the answers of nine Retired Non-Buyers in the DC area, 34 Retired Non-Buyers in the East and 29 Retired Non-Buyers in the West.
TABLE A-22: Comparison of FLTCIP to Other Programs Among Active Buyers by Geographic Location (D.C. vs. East vs. West)
Reasons for Buying Active Buyers DC Active Buyers East Active Buyers West
Was the FLTCIP compared to other programs
   Yes 49 45 46
   No 51 55 54
Why was the FLTCIP purchased instead of a different program
a) lower rates
   Yes 25 33 35
   No 75 67 65
b) better benefits
   Yes 23 26 25
   No 77 74 75
c) recommended by others
   Yes 12 6 8
   No 88 94 92
d) easier to qualify
   Yes 45 38 39
   No 55 62 61
e) easier to get benefits
   Yes 11 17 17
   No 89 83 83
f) easier to understand coverage
   Yes 18 21 25
   No 82 79 75
g) Federal Government sponsorship
   Yes 73 69 78
   No 27 31 22
h) underwritten by Long Term Care Partners
   Yes 29 28 27
   No 71 72 73
TABLE A-23: Comparison of FLTCIP to Other Programs Among Retired Buyers by Geographic Location (D.C. vs. East vs. West)
Reasons for Buying Retired Buyers DC Retired Buyers East Retired Buyers West
Was the FLTCIP compared to other programs
   Yes 39* 29* 33
   No 61 71 67
Why was the FLTCIP purchased instead of a different program
a) lower rates
   Yes 31* 48 47
   No 69 52 53
b) better benefits
   Yes 26* 36* 33
   No 74 64 67
c) recommended by others
   Yes 11* 6 6
   No 89 94 94
d) easier to qualify
   Yes 19 22* 13*
   No 81 78 87
e) easier to get benefits
   Yes 7 9 6
   No 93 91 94
f) easier to understand coverage
   Yes 23 24* 16*
   No 77 76 84
g) Federal Government sponsorship
   Yes 87 86 81
   No 13 14 19
h) underwritten by Long Term Care Partners
   Yes 29* 39* 33
   No 71 61 67
TABLE A-24: Reasons for Not Buying the Federal Program: ActiveNon-Buyers by Geographic Location (D.C. vs. East vs. West)
Reasons for Not Buying Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
Were the following reasons not to buy the FLTCIP:
a) have other insurance like FEHB
   Yes, a reason 11 11 17
   No, not a reason 89 89 83
b) will buy the FLTCIP later
   Yes, a reason 47 51 53
   No, not a reason 53 49 47
c) information about the FLTCIP too confusing
   Yes, a reason 17 23 23
   No, not a reason 83 77 77
d) not happy with the features of the FLTCIP
   Yes 22 18 15
   No 78 82 85
TABLE A-25: Reasons for Not Buying the Federal Program: Retired Non-Buyers by Geographic Location (D.C. vs. East vs. West)
Reasons for Not Buying Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
Were the following reasons not to buy the FLTCIP:
a) have other insurance like FEHB
   Yes, a reason 24 18 18
   No, not a reason 76 82 82
b) will buy the FLTCIP later
   Yes, a reason 13 24 23
   No, not a reason 87 76 77
c) information about the FLTCIP too confusing
   Yes, a reason 13 22 19
   No, not a reason 87 78 81
d) not happy with the features of the FLTCIP
   Yes 16 17 15
   No 84 83 85
TABLE A-26: Factors that Would Make Active Non-Buyers More Interested in Buying the Federal Program by Geographic Location (D.C. vs. East vs. West)
Factors Active Non-Buyers DC Active Non-Buyers East Active Non-Buyers West
More interested in buying the FLTCIP if:
a) there were more choices regarding the amount of home care coverage
   Agree 50 60 59
   Disagree 50 40 41
b) there was a guarantee that premiums will not increase in the future
   Agree 76 85 84
   Disagree 24 15 16
c) there was a premium discount for couples who purchase the program
   Agree 64 67 66
   Disagree 36 33 34
d) premiums were tax deductible
   Agree 89 87 86
   Disagree 11 13 14
Three most important factors that would make a non-buyer more interested in buying
Tax deductible premiums 32 37 33
A guarantee that premiums will not increase in the future 13 21 23
A premium discount for couples who purchase the program 20 19 17
TABLE A-27: Factors that Would Make Retired Non-Buyers More Interested in Buying the Federal Program by Geographic Location (D.C. vs. East vs. West)
Factors Retired Non-Buyers DC Retired Non-Buyers East Retired Non-Buyers West
More interested in buying the FLTCIP if:
a) there were more choices regarding the amount of home care coverage
   Agree 55 59 60
   Disagree 45 41 40
b) there was a guarantee that premiums will not increase in the future
   Agree 69 77 78
   Disagree 31 23 22
c) there was a premium discount for couples who purchase the program
   Agree 65 61 63
   Disagree 35 39 37
d) premiums were tax deductible
   Agree 77 77 75
   Disagree 23 23 25
Three most important factors that would make a non-buyer more interested in buying
Tax deductible premiums 25 25 22
A guarantee that premiums will not increase in the future 9 19 20
A premium discount for couples who purchase the program 25 16 18
This policy 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.
Data Briefs on Federal Long-Term Care Insurance Buyers/Non-Buyers

A total of nine Data Briefs are available from the Office of Disability, Aging and Long-Term Care on this subject:

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