Interesting-- I wasn't aware that tax deductions were available to offset the expense of LTC premiums. I guess it's considered a part of medical expenses on the federal tax return?
"Study: Elder care insurance incentives don't work"
"But self-insurance for long-term care is bought by less than 10 percent of the populace.
'The way many middle class people are increasingly dealing with this is to spend or shield their nest-egg savings, and then start drawing benefits from the program for the poor, Medicaid,' said Nixon. 'If that pattern continues, state governments will be fiscally unable to copy as Medicaid claims quadruple over the course of only 15 years.'
The federal government allows deductions for long-term care insurance but at a threshold that places the deduction out of reach for most people. Several states have their own deductions but Nixon said most are too meager to spur policy purchases.
'Even the most generous subsidies have been insufficient to induce additional people to purchase long-term care insurance for themselves,' he said."
"Study: Elder care insurance incentives don't work"
"But self-insurance for long-term care is bought by less than 10 percent of the populace.
'The way many middle class people are increasingly dealing with this is to spend or shield their nest-egg savings, and then start drawing benefits from the program for the poor, Medicaid,' said Nixon. 'If that pattern continues, state governments will be fiscally unable to copy as Medicaid claims quadruple over the course of only 15 years.'
The federal government allows deductions for long-term care insurance but at a threshold that places the deduction out of reach for most people. Several states have their own deductions but Nixon said most are too meager to spur policy purchases.
'Even the most generous subsidies have been insufficient to induce additional people to purchase long-term care insurance for themselves,' he said."