Long Term Care Insurance

This paper considers the case for long term care insurance specifically designed to address what the World Bank describes as the `looming old age crisis'. It has been suggested that if such insurance is fully funded then this will simultaneously assist with the problem of Australia's low savings ratio. It is argued that the ageing of Australia's population cannot be described as a `looming crisis' and that the benefit of funded health insurance could be achieved as easily by an increase in taxation or the health insurance levy.