Template-type: ReDIF-Paper 1.0

Author-Name: Honsoo Kim
Author-Workplace-Name: Hansun Foundation
Author-Workplace-Email: econkhs@gmail.com

Author-Name: Soojin Kim
Author-Workplace-Name: Georgia State University
Author-Workplace-Email: soojinkim@gsu.edu

Author-Name: Wonshik Kim
Author-Workplace-Name: Georgia State University
Author-Workplace-Email: kwonshik@gsu.edu

Author-Name: Kyung Hoon Yang
Author-Workplace-Name: University of Wisconsin, La Crosse
Author-Workplace-Email: kyang@eagle.uwlax.edu

Title: Dynamic Effects of Long-Term Care Insurance on Healthcare Expenditures: Evidence from South Korea

Abstract: Long-term care expenses pose a large financial risk to the elderly. In 2008, South Korea introduced a public long-term care insurance (LTCI) program for individuals older than 65. We study the dynamic effects of the LTCI on various healthcare expenditures. We find that after the implementation of the LTCI, average prescription drug and outpatient expenditures of the elderly increased. Dynamically, we observe that the growth in these expenditures moderates. We also find suggestive evidence that after the LTCI program, the elderly utilize LTC hospitals, substituting out of inpatient hospital services. These findings underscore the importance of understanding the long-term effects of LTCI on health and healthcare expenditures of the elderly and the need to account for such interactions in policy design.

Length: 21 pages

Creation-Date: 2022-12

File-URL: https://icepp.gsu.edu/files/2023/01/paper2209.pdf
File-Format: application/pdf
Handle: RePEc:ays:ispwps:paper2209