Preferences for in-kind and in-cash home care insurance

Jochem de Bresser, Marike G. Knoef, Raun van Ooijen*

*Corresponding author for this work

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Abstract

We study preferences for different types of home care insurance using a discrete choice experiment. We consider domestic, personal, and social care, a home care annuity, and a lump-sum for home adaptations. To understand variation in preferences, we relate willingness to pay to personal circumstances, preferences, and expectations. We find that the majority value in-kind and in-cash insurance above the actuarial premium. While most respondents value coverage for basic levels of support, we find diminishing marginal utility for higher levels of support. For in-kind care, willingness to pay is positively associated with respondent characteristics: being single, household income, home ownership, risk aversion, low bequest motives, expected length of home care use, expected expenditures when in need of care, and low expected availability of informal care. In contrast, in-cash support is valued regardless of respondent characteristics, possibly because its inherent flexibility. These results contribute to the design of insurance schemes for home care.
Original languageEnglish
Article number102626
Number of pages26
JournalJournal of Health Economics
Volume84
DOIs
Publication statusPublished - Jul-2022

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