Social Security benefits may be stagnant, but the IRS is increasing the amount you can deduct on your 2011 taxes as a result of buying long-term care insurance. Premiums for "qualified" long-term care insurance policies (see explanation below) are tax deductible provided that they, along with other unreimbursed medical expenses, exceed 7.5 percent of the insured's adjusted gross income. These premiums — what the policyholder pays the insurance company to keep the policy in force — are deductible for the taxpayer, his or her spouse and other dependents. (If you are self-employed, the tax-deductibility rules are a little different: You…
The basic premium for Medicare Part B will be $115.40 a month in 2011, up from $110.50 in 2010 (a 4.4 percent increase). But because there will be no cost of living benefit increase for Social Security recipients for 2011, most beneficiaries will be exempted from paying this increase and will instead pay the same $96.40 premium amount they have paid since 2008. A "hold-harmless" provision in the Medicare law prohibits Part B premiums from rising more than that year's cost of living increase in Social Security benefits. Since there is no Social Security increase, most beneficiaries — about 73…
The Social Security Administration last week announced that there will be no cost of living adjustment (COLA) for Social Security recipients again next year. Social Security and SSI benefits are adjusted annually to reflect increases, if any, in the cost of living as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), prepared by the Bureau of Labor of Statistics. Since the BLS determined that there was no increase in this index from the third quarter of 2008 through the third quarter of 2010, there can be no increase in the COLA for 2011. There…
If you are single, the odds are 50 percent that you will need long-term care. If you are age 65 and married, the odds are 75 percent that you or your spouse will need long-term care. These statistics reveal that most people will be faced with long-term nursing home care issues and challenges at some point in their lives – whether for themselves or a loved one. While surfing the web this week, I ran across an excellent Special Report on Long-Term Care put together by the folks at Kiplinger. I think it’s an excellent resource for anyone considering purchasing…
The Kaiser Family Foundation Report explores factors that appear to drive relatively high rates of hospitalizations, based on interviews with doctors, nursing home staff and families in four cities. Key factors include liability concerns, limited onsite staff capabilities, difficulty reaching residents' physicians for care instructions on nights and weekends, better and more timely access to diagnostic tests in hospitals, and patient preferences. Physicians with patients in a long-term care facility say it is more convenient and potentially in their financial interest to see patients in the hospital, based on their understanding of coverage and payment policy.
A Medicaid Friendly Irrevocable Trust has asset protection potential for those whose health and budget will allow them to leave the assets undisturbed for five years.
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