HSAs and LTC Premiums

[sdmillar]

NADM,

I appreciate your patience. No one actually told me that the entire LTCi premium could be paid from your HSA. I have confirmed exactly what you have been saying and thank you for walking me through how to come to that conclusion.

Seems to me that with the financial condition of Medicaid and the tremendous number of people that are going to be depending upon it in the near future, that the government would be wise to do all it can to encourage people to purchase appropriate LTC insurance. Like many other things involving the baby boomers, we won't be able to pay for this through medicaid.

For starters... How about those that do not have a HSA, why not remove the 7.5% of AGI requirement for everyone when it comes to tax deductibility of premiums for LTCi? I think raising th amounts for each age band would make sense as well.

I have read that only 5% of funds used to pay for LTC are coming from private insurance sources. I hope that is because it has not been around long enough.

Thanks again

 

[GreenSky]

NADM,

I appreciate your patience. No one actually told me that the entire LTCi premium could be paid from your HSA. I have confirmed exactly what you have been saying and thank you for walking me through how to come to that conclusion.

Seems to me that with the financial condition of Medicaid and the tremendous number of people that are going to be depending upon it in the near future, that the government would be wise to do all it can to encourage people to purchase appropriate LTC insurance. Like many other things involving the baby boomers, we won't be able to pay for this through medicaid.

For starters... How about those that do not have a HSA, why not remove the 7.5% of AGI requirement for everyone when it comes to tax deductibility of premiums for LTCi? I think raising th amounts for each age band would make sense as well.

I have read that only 5% of funds used to pay for LTC are coming from private insurance sources. I hope that is because it has not been around long enough.

Thanks again

Stop complimenting NADM. If his head swells any more it will explode. He already has pulled a shoulder muscle patting himself on the back.

You asked a much more important question. It's not just LTC deductibility that is the issue. How about health insurance premiums in general. Our current commies in charge see no value in HSA plans so they're gone by 2014.

We have a government run by one party. Sometimes its the more fiscally and socially conservative wing, and sometimes it's the socialists.

Rick

 

[yankee466]

You could also ask why you can NOT pay LTC premiums out of a FSA, but a HSA is fine., You would think that would help people pay for LTC too.

 

[Mr_Ed]

Stop complimenting NADM. If his head swells any more it will explode. He already has pulled a shoulder muscle patting himself on the back.

You asked a much more important question. It's not just LTC deductibility that is the issue. How about health insurance premiums in general. Our current commies in charge see no value in HSA plans so they're gone by 2014.

We have a government run by one party. Sometimes its the more fiscally and socially conservative wing, and sometimes it's the socialists.

Rick

I'll reply when I get back from the chiropractor... he's working on my pulled shoulder right now.


***mobile web sarcasm used for this post.
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You could also ask why you can NOT pay LTC premiums out of a FSA, but a HSA is fine., You would think that would help people pay for LTC too.

The only "revenue neutral" legislation that would work would be allowing tax-free withdrawals from IRA's and 401k's to pay for LTCi premiums (and the withdrawal would not be allowed to count towards the minimum distribution requirements.)

Money in IRA's and 401k's is not being taxed now anyway. For most people, much of the money in their IRA's and 401k's won't be taxed until they die. That is why legislation like that would be "revenue neutral" or at least very close to being "revenue neutral".

nadm