Long term care Texas weighs heavily on many Texan’s minds. With people living longer than ever due to advances in health care, and with many more people entering the roles of Medicare, the specter of long term care often causes worry. Your insurance or financial advisor will have a worksheet to help you determine how much long term care you may need, and what you can afford. The worksheet will also help you determine whether or not you actually need long term care.

One of the considerations on the type of policy you choose will be whether or not it is tax deductible. It is possible that your policy is the kind that will allow you to deduct some of the premium from your taxes, counting it as medical expenses.

Additionally, if you are receiving benefits from your long term benefits, these funds are not counted toward your taxable income. The exception (and of course, there has to be one, when it comes to taxes) is with indemnity policies. In the case of indemnity policies, any money your policy pays that exceeds your cost of care may be taxable.

If you purchased your policy before 1997, it is considered tax-qualified. If you purchased your policy after January 1, 1997, it may be non tax-qualified. A tax-qualified policy will have a statement published on the paperwork stating that the policy is “qualified long-term care”.  Your best course of action is to consult with an accountant or tax advisor on the effect a long-term care policy will affect your taxes.

Long term care Texas is a partnership between the state government and insurance companies. The goal is to inform Texans about how to plan for long-term care. If an insurance agent wants to sell long-term policies, he must complete a training program. All insurance companies participating in the program must follow all guidelines set by the state and federal government. These policies are called “partnership policies”.

A partnership policy has a benefit that will disregard certain assets should you have to apply for Medicaid as part of your long-term care. This helps people with relatively high assets who would benefit from Medicaid care. The partnership policy basically allows you to switch out, dollar for dollar, the cost of your medical and long term care with your assets. So, for instance, if you have $50,000 a month in medical and long-term care costs, it will cancel out $50,000 a month in assets. This may qualify you for Medicaid, whereas before, you would have been ineligible with $50,000 a month in assets.

Additionally, if you do become eligible for Medicaid, after you die Medicaid cannot attach a lien against your assets to get repayment. With this protection, you won’t have to get rid of your assets to such a high degree in order to get Medicaid.

Long term care Texas is formulated with the aging populace in mind. Continuing health care and good living conditions are the priority.