Does Long-Term Care Subsidy Decrease Healthcare Utilization and Expenditures? Evidence From the Long-Term Care Insurance in Korea

• 成果类型: Article
• 署名作者: Park, GaYoung; Hahn, Youjin
• 署名单位: Yonsei University
• 刊物名称: JOURNAL OF POLICY ANALYSIS AND MANAGEMENT
• ISSN/ISSBN: 1520-6688
• DOI: 10.1002/pam.70107
• 发表日期: 2026-05-24
• 页码: e70107
• 关键词: mortality

摘要

We examine the effect of government subsidies for long-term care (LTC) on healthcare utilization and health outcomes in Korea, which exhibits one of the fastest rates of population aging. Using a regression discontinuity design, our intent-to-treat estimates indicate that eligibility for subsidized LTC services reduces out-of-pocket medical and prescription drug spending by about 20% and 16% of the baseline mean, respectively, and lowers the likelihood of inpatient hospital admission by about 12%. These reductions in healthcare utilization and expenditures are not associated with adverse health outcomes. In particular, eligibility reduces the likelihood of hospital admission due to fractures, which could be a possible channel for these results. Overall, our findings suggest that LTC subsidies can partially offset medical expenditures without negatively affecting the health outcomes of older adults.