Category: General Public Policy for Long-Term Care Financing

Public Policy for Long-Term Care Financing

January 31, 2024

The Long Term Care Discussion Group
Wednesday, January 31, 2024, 2:00 to 3:00 p.m.

Mark J. Warshawsky, American Enterprise Institute. He  is a senior fellow at the American Enterprise Institute (AEI), where he focuses on Social Security and retirement issues, pensions, long-term care, disability insurance, and the federal budget. Before joining AEI, Dr. Warshawsky served as deputy commissioner for retirement and disability policy at the Social Security Administration.

Long-term care (LTC) in the United States is financed by a mix of private and, mainly, public funds. With the projected aging of the population, it is not fiscally sustainable. The system—especially Medicaid public insurance—is also unfair, riddled with bad incentives and poorly administered and is getting worse. Federal social insurance initiatives have failed and state insurance programs are poor and unpopular. Yet the existing structure, including private insurance, can be improved and the situation rectified by a few key changes, which will be put forward in this session. In particular, the proposal puts Medicaid back in its intended place and incentivizes a revitalization of private LTC insurance.

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