Long Term Care Insurance

[Guest lschaab]

Did anyone see a recent article in Money magazine stating that long term care insurance, was not only tax deductible but reimbursable under a medical FSA? Did I miss something in the OTC translation??

[oriecat]

I didn't see it and don't know anything about it, but it seems rather odd, as the Sec 125 code specificly excludes long term care insurance from the definition of qualified benefits.

[mroberts]

A very small portion of LTC insurance can be deducted when doing your annual taxes. I forget the exact numbers, but it's nothing considerable.

As far as paying the premiums through a medical FSA goes, that I have not heard. Now, if an employer has an HRA within a consumer-driven medical plan, I've seen an employer swing a deal that employees can use this money to pay for other insurances such as LTC. I don't know all the fine details on the subject, however, I would imagine a carrier that deals with HRA's can point you in the right direction.