LTC insurance ($50 nursing home daily benefit). The same policy as above, except that individuals buys policies as they can afford the $50 a day indemnity benefit for nursing home care.

Continuing care retirement communities. Continuing care retirement communities are modeled as comprehensive long- term care insurance mechanisms. Physically fit individuals and couples are assumed to join CCRCs if they have 130 percent of the income needed for the monthly payment and if they have enough total assets to pay the entry fee and have at least $10,000 in assets left over. Of the disabled elderly who qualify financially, half are assumed to pass healthh screening requirements and join. Because of the reluctance of the elderly to move, only 50 percent of qualifying individuals and couples are assumed to join CCRCS. Individuals join CCRCs at age 76.