Comment – Is Self-Insurance for Long-Term Care Risk a Solution?

Abstract

[eng] The financial risk associated with long‑term care (LTC) is partially insured in France and in all European countries. However, the level of coverage across all countries is significantly lower compared to health risk. Public coverage varies widely from country to country, although in most cases households are left to bear a significant proportion of the cost burden. Since LTC risk occurs at the end of life, the use by households of their financial and housing assets to finance their LTC expenses – in other words, self‑insurance – may appear as one solution. Using data from the SHARE survey, the study by Carole Bonnet, Sandrine Juin and Anne Laferrere aims to address this question head‑on and to assess the extent to which self‑insurance could meet the financing needs of long‑term care in Europe. This comment considers the approach taken by the authors before discussing the implications of their analysis.