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IN THE NEWS-Long Term Care Services & Health Care Reform
Currently there are 10 million Americans in need of long-term care services and supports to assist them in life's daily activities. Currently the Medicaid program is our nation's primary payer and only safety-net program providing comprehensive long-term services and supports. But, American who need long-term care services qualify for Medicaid only if they are, or become, poor.
Aging & Disability Organizations Joining Forces to Help Enact the Community Living Assistance Services and Supports (CLASS) Act as Part of Health Care Reform
Purpose of the Bill
To help adults with severe functional impairments obtain the services and supports they need to stay functional and independent, while providing them with choices about community participation, education and employment.
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How Will You Pay for Long-Term Care Services?
Many people mistakenly think their health insurance or Medicare will pay for any long-term care services they may need. But health insurance really only pays for doctor and hospital bills. If you develop a chronic illness or become disabled and are unable to care for yourself for an extended period of time, you'll need long-term care services. But these services are not inexpensive.
Typically there are three ways to pay for long-term care services:
- Medicaid: for those with limited assets
- Private pay: for those wanting to use their savings and assets
- Long-Term Care Insurance: for those wanting to transfer risk to an insurance company.
Medicaid is not an option that most people want to rely on because it requires you to spend down most of your hard-earned assets in order to qualify.
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2010 Long-Term Care Insurance Deduction Increase
The IRS announced a 3% increase in deductibility levels for Long-Term Care policies purchased in 2010. For the first time, a maximum deductible limit for an individual exceeds $4,000, making Long-Term Care Insurance more attractive and helping families protect their assets.
The deduction limits under IRS Section 213(d)(10) for eligible long-term care insurance premiums are as follows:
Age Before Close of Taxable Year 2010 Deduction Limits
40 or under $330
Over 40 but not more than 50 $620
Over 50 but not more than 60 $1,230
Over 60 but not more than 70 $3,290
Over 70 $4,110
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