Seminario 22/1: Manuel Serrano (Bocconi University, Italia). The effect of Long-Term Care (LTC) benefits on healthcare use

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Abstract:  This paper examines the role of LTC benefits on the use of primary and secondary care by exploring a detailed administrative database in Spain. We estimate the causal effect of receiving LTC benefits by exploiting exogenous variation in the leniency of the examiners who assess the claimants’ LTC needs. We find that a monthly LTC benefit of around 412 euros could reduce avoidable hospital admissions by 60% and also unscheduled «walk-in» patient visits by half. Furthermore, we found that LTC benefits could promote preventive healthcare improving access to planned healthcare services such as cataract surgery. These findings have important policy implications suggesting that allocating resources to LTC might not only increase the welfare of LTC beneficiaries but also help to contain healthcare costs.