Learn About LTSS Financing Models

The American long-term services and supports (LTSS) system does not sufficiently support older adults, people with disabilities, workers, or family caregivers. Allison Cook, Founder of Better Aging and Policy Consulting, worked with MIT CoLab to issue a report that outlines four LTSS financing models that can be considered by stakeholders a they explore creating a more equitable and accessible LTSS financing system:

• PRIVATE LTSS INSURANCE: Private insurance companies provide coverage to individuals who pay premiums. This model tends to exclude lower-income individuals who cannot afford the premiums.

• SAFETY NET: The government provides LTSS coverage to individuals who fall below a certain income and asset level (as is done through the Medicaid program). This model can force those of moderate means who would not otherwise qualify to impoverish themselves to meet qualification thresholds.

• SOCIAL INSURANCE: Individuals contribute taxes toward a government-run program through which they can access benefits as needed. While this model can work well for older adults who have had time to pay into the program, it does not always meet the needs of younger people with disabilities.

• UNIVERSAL COVERAGE: The government provides LTSS coverage to all who need it. Generally financed through general revenues and taxes, this model is the most expensive to maintain but also tends to be the most equitable.

Read the full report.