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Old 01-27-2010, 07:40 PM   #1
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Insurance seminar

Yesterday drove to insurance seminar. Actually learned some stuff.

Money for LTC can be deducted from State Income tax.

I really don't like driving at night.

Seminars are big on caffeine & sugar.
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Old 01-27-2010, 08:46 PM   #2
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Yesterday drove to insurance seminar. Actually learned some stuff.

Money for LTC can be deducted from State Income tax.

.
What state? I checked for California and it looks like LTC is a medical expense and on Federal & CA state it is deductible if you itemize and medical expenses (inc LTC) exceed 7.5% of AGI. Not even close for me, even after some dental bills.
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Old 01-28-2010, 05:37 AM   #3
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I don't know much about long term care insurance except that several insurance agent types have tried to get me to consider it. I think it should be a deductible expense on state income tax if it is not. In PA most of the people admitted to nursing homes long-term are on Medicaid(or very shortly on Medicaid after spending down modest assets), and I think a crisis will be afoot in the not-too-distant future as PA's tax base dwindles. It seems that more people are shifting their assets around to evade the 5-year DPW (Dept. of Public Welfare) look-back period or setting up trusts. Relatively few attempt to pay their own way with LTC insurance and I think the state should encourage this. Of course, this makes sense so they won't.
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Old 01-28-2010, 09:47 AM   #4
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What state? ........
I think Dayton is currently in Ohio.
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Old 01-28-2010, 09:15 PM   #5
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I think Dayton is currently in Ohio.
Yes, Ohio.
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Old 01-28-2010, 09:56 PM   #6
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. . . I think it should be a deductible expense on state income tax if it is not. In PA most of the people admitted to nursing homes long-term are on Medicaid(or very shortly on Medicaid after spending down modest assets), and I think a crisis will be afoot in the not-too-distant future as PA's tax base dwindles. It seems that more people are shifting their assets around to evade the 5-year DPW (Dept. of Public Welfare) look-back period or setting up trusts. Relatively few attempt to pay their own way with LTC insurance and I think the state should encourage this. Of course, this makes sense so they won't.
The states and the feds are taking limited steps to encourage people to buy LTCI. Here's a map showing the states with existing LTCI "Partnership Programs." These programs have several attributes, but one of the main ones is this: Residents who buy an approved LTCI policy in a partnership state don't have to spend down all their assets to qualify for Medicaid coverage. If, say, you buy a LTCI policy with a $200K benefit, then you'll qualify for Medicaid benefits when you've spent your own assets down to $200K. In addition, some states (including Ohio) are actively pushing LTCI through statewide advertising campaigns as a means to reduce their Medicaid expenditures.

I'm not a big fan of the product, but the states sure see value in it.

The rumors of possible inclusion of some type of LTC coverage in the federal health care legislation must have been terrible for the LTC insurance biz. Few will want to buy private policies while this is being discussed.
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Old 01-28-2010, 11:52 PM   #7
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Seminars are big on caffeine & sugar.
... and it's free, too!!
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Old 01-29-2010, 05:10 AM   #8
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Samclem, interesting to read about the LTCI state partnerships. From what I can deduce from some first hand experience here in western PA, there is a fine line between nursing home level of care and personal care home level of care. The latter are much cheaper and are appropriate so long as you don't have an obvious daily skilled nursing need(like wounds requiring dressing or ventilator care). If you can afford to pay around $3000 a month you can get a private room, personal care, meals, laundry, and believe me they won't kick you out if you require a little more care than that and your check doesn't bounce. And you don't have to wrangle with an insurance company about what is covered and what isn't. Just my humble opinion.
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Old 01-29-2010, 06:28 AM   #9
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Another thing I would add on the subject of state approved LTCI policies would be to look in to how these policies are selected and approved. I would not take it for granted that they were selected with the consumer as the priority. Some people gain an inside track on products because of who they know amongst the powers that be.
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Old 02-03-2010, 06:50 PM   #10
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... and it's free, too!!
They also served pie and ice cream.
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Old 02-03-2010, 06:56 PM   #11
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The states and the feds are taking limited steps to encourage people to buy LTCI. Here's a map showing the states with existing LTCI "Partnership Programs." These programs have several attributes, but one of the main ones is this: Residents who buy an approved LTCI policy in a partnership state don't have to spend down all their assets to qualify for Medicaid coverage. If, say, you buy a LTCI policy with a $200K benefit, then you'll qualify for Medicaid benefits when you've spent your own assets down to $200K. In addition, some states (including Ohio) are actively pushing LTCI through statewide advertising campaigns as a means to reduce their Medicaid expenditures.

I'm not a big fan of the product, but the states sure see value in it.

The rumors of possible inclusion of some type of LTC coverage in the federal health care legislation must have been terrible for the LTC insurance biz. Few will want to buy private policies while this is being discussed.
Interesting samclem. My state, VA, is on your map. I'll need to study up on this since DH and I have long term health insurance.

Thanks for sharing Khan. I'm reluctant to go to seminars like this due to my fear of salespeople

Sure do appreciate the info.
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Old 02-03-2010, 07:00 PM   #12
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Money for LTC can be deducted from State Income tax.
So just to be clear...

Are the payments deductable if they exceed the 7.5% of AGI ??

Or are you talking about the LTC insurance benefit not being taxed as income when it comes ?
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Old 02-03-2010, 07:18 PM   #13
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Interesting samclem. My state, VA, is on your map. I'll need to study up on this since DH and I have long term health insurance.

Thanks for sharing Khan. I'm reluctant to go to seminars like this due to my fear of salespeople

Sure do appreciate the info.
No sales pressure while there. They did call me later.
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Old 02-03-2010, 07:18 PM   #14
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So just to be clear...

Are the payments deductable if they exceed the 7.5% of AGI ??

Or are you talking about the LTC insurance benefit not being taxed as income when it comes ?
No, the incentives are quite a bit better than that in many states.

Here's a link showing the deductibility of LTCI premiums in various states. In many cases people can deduct the entire cost of qualified LTCI plans from their taxable income for their state taxes, or they get a tax credit for 10-25% of the premiums they paid. It's from the first dollar, no need to exceed 7.5% of AGI. One caveat--in a few states there is a max cap on tax credits and it is very low--e.g. $150 per year.
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Old 02-03-2010, 07:21 PM   #15
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So just to be clear...

Are the payments deductable if they exceed the 7.5% of AGI ??

Or are you talking about the LTC insurance benefit not being taxed as income when it comes ?
For state income tax, deducted from income, does not have to be any particular amount or %.
That's how I understand it.

Not sure of benefit.
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Old 02-03-2010, 07:28 PM   #16
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So just to be clear...

Are the payments deductable if they exceed the 7.5% of AGI ??

Or are you talking about the LTC insurance benefit not being taxed as income when it comes ?
For state income tax, deducted from income, does not have to be any particular amount or %.
That's how I understand it.

Not sure how benefits are taxed.
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Old 02-04-2010, 04:38 PM   #17
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I prefer to attend retirement seminars that feed me BS for about an hour then they serve me a steak dinner, or other meal, as a reward for sitting thru the dog/pony show and tell them "no thanks" when I am offered an opportunity to have a complementary one-on-one meeting at "the office."

It's gotten to be one of my favorite forms of entertainment lately (especially if cocktails precede the event). It's amazing how they try to dress up the EIA and slap on the lipstick, but, I'll be dammed~ it's still a pig!
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