Because LTC costs may be catastrophic for individuals, experts2 argue that public involvement in LTC makes sense: the risk of needing LTC can be spread evenly and efficiently while ensuring equity of access. Moreover private LTC insurance has not proved to be popular (it pays for less than 2% of total LTC costs), at least in part because of the complexity of coverage options and the consumer’s difficulty in estimating LTC risks.
The public means of financing LTC vary widely across MS and include general tax revenues, local taxes, general social security contributions or specific social insurance. In most MS, private participation is an important component, either through paying costs directly or through family members providing informal care.
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