The changing face of long-term care insurance in 1994: profiles and innovations in a dynamic market.

This study examines buyers and nonbuyers of long-term care insurance. The findings show that consumers purchased more comprehensive products in 1994-95 than they did in 1990, and that they appeared to get better value for the premium dollar. While annual sales are increasing at a rate of 25%, the market for long-term care insurance remains small, and many of the market barriers that existed four to five years ago persist today. These include confusion about public coverage, concerns about the adequacy of products and how to choose them, policy cost, and inadequate information about potential risk for needing long-term care. As states target limited public funds toward the indigent, older middle-class people will have to deal with exposure to risk for long-term care, and insurance may be one way to minimize this exposure.