This includes his legislation allowing the VA to enter into Veterans Care Agreements (VCAs) with qualified long-term care
Further, while health insurance premiums are not treated as qualified medical expenses according to IRS rules, premiums for Medicare Parts A and B, as well as qualified long-term care
insurance premiums, are expenses that can be withdrawn tax-free.
Even though long-term care is not medical treatment, the costs for qualified long-term care
services of a chronically ill individual that are not covered by insurance, government benefits, or other sources can be treated as a deductible medical expense (IRS Publication 502).
Beginning in 2010, tax-free distribution status was given to both annuity assets and long-term care rider benefits used for a qualified long-term care
Costs of qualified long-term care
services and, to a limited amount, premiums paid for qualified long-term care
The Health Insurance Portability and Accountability Act of 1996 ("HIPPA") included the Tax-Qualified Long-term Care Insurance Contract, and extended tax deductibility of a number of premiums and tax exemptions for particular benefits to qualified long-term care
During "Phase I," the qualified long-term care
expenses of a chronically ill covered person were paid up to a certain monthly cap until the value of the contract was reduced to zero.
Seeking independent advice from a qualified long-term care
specialist is a good place to start.
Amounts paid for qualified long-term care
services are deductible as medical expenses under Sec.
Internal charges to pay the qualified long-term care
insurance rider in a life insurance policy or annuity are no longer treated as taxable distributions.
However, a notable exception allows reimbursement for premiums paid for a qualified long-term care
A long-term care insurance policy issued after 1996 meets the definition of a "qualified long-term care
insurance contract," under IRC Section 7702B(b), if