As Donald Trump assumes office as the 47th president of the United States, the prospect of a federal government-backed plan for long-term care has become increasingly unlikely, according to Matt McCann, one of the nation's foremost specialists in long-term care planning.
"The new administration is expected to maintain the status quo, keeping existing federal programs intact and continuing tax advantages for qualified Long-Term Care Insurance policies."
McCann notes that the Trump administration will preserve the Long-Term Care Insurance Partnership Program, created as part of the Deficit Reduction Act. The Deficit Reduction Act (DRA) of 2005, signed into law by President Bush in 2006, incentivizes private LTC Insurance policies, providing a policyholder with additional dollar-for-dollar asset protection.
What is the Partnership Program?
The Long-Term Care Insurance Partnership Program is a public-private initiative encouraging individuals to purchase Long-Term Care Insurance policies. Under the program, policyholders who exhaust their benefits can qualify for Medicaid coverage without having to spend down all their assets, as long as they meet Medicaid's income requirements.
McCann says that partnership policies offer peace of mind.
"A Partnership Long-Term Care Insurance policy not only protect families financially but also shield assets that otherwise might be depleted when long-term care becomes necessary."
McCann says even a small policy can offer substantial asset protection, in addition to paying for quality care without burdening loved ones.
Rising Costs of Long-Term Care
The rising cost of long-term care remains a critical issue for millions of Americans. According to a recent survey of long-term care costs from LTC News, the median annual cost of in-home care services averages nearly $62,000 per year. The base cost for assisted living and memory is higher. However, the median annual cost for a private room in a nursing home is nearly $115,000. These figures are projected to continue climbing, driven by increased labor costs and increased demand as the population ages.
Health insurance and Medicare only pay for short-term skilled care. Medicaid will pay for long-term care services for those with limited financial resources.
American families are left to navigate these financial challenges largely on their own unless they have Long-Term Care Insurance. McCann emphasized the importance of early planning, citing Long-Term Care Insurance as a viable solution to mitigate the high costs and the burden otherwise placed on families.
Tax Advantages for Long-Term Care Insurance
Qualified LTC Insurance policies come with significant tax benefits. Premiums for these policies may be tax-deductible, and benefits paid under the policy are tax-free. McCann said these incentives are critical to encouraging individuals to plan their future care, ensuring quality care, and giving loved ones the time to be family instead of caregivers.
Limited Federal Involvement
While the federal government supports existing programs such as Medicaid and Medicare, these programs have significant limitations when it comes to long-term care.
Medicare, for example, only covers short-term skilled nursing care under specific conditions, leaving many families to shoulder the bulk of long-term care expenses. Medicaid, meanwhile, requires individuals to meet stringent income and asset thresholds to qualify for coverage.
"Families should not rely on federal programs alone to address long-term care needs," McCann warned.
"The federal government has consistently signaled, starting with the Clinton administration, that it is not in a position to fund long-term care for the general population, focusing instead on those with limited financial resources."
McCann says Long-Term Care Isnurance makes it easy and affordable to plan before you retire.
How Much Does Long-Term Care Insurance Cost at My Age?
The Path Forward
Experts like McCann stress the importance of proactive planning with the Trump administration focused on maintaining current policies rather than implementing new federal programs.
"Long-Term Care Insurance, especially policies that participate in the Partnership Program, can provide families with financial security and access to quality care."
McCann says that for those who qualify, these policies are the best way to prepare for the inevitable challenges of aging.
In the absence of new federal programs, McCann's advice to Americans is clear: start planning now. By exploring LTC Insurance options, understanding available tax benefits, and taking steps to protect assets, families can face the future with greater confidence and less financial strain.
Most people purchase a Long-Term Care Insurance policy between the ages of 47 and 67. Premiums and underwriting guidelines can vary significantly between insurance providers. McCann recommends consulting an LTC Insurance specialist who works with top-rated companies to find the best solutions and accurate quotes
Get Professional Planning Help
Matt McCann is licensed in all 50 states and the District of Columbia, representing top-rated insurance companies that provide long-term care solutions. His innovative approach allows clients to consult with him over the phone while viewing his computer screen, ensuring a convenient and transparent process for learning about, exploring, and selecting the best options.
You can get free and accurate quotes from all the top companies, along with professional recommendations - Free and Accurate Quotes.
Media Availability
McCann is available for radio, TV, and podcast interviews. He also speaks to groups and organizations worldwide on the issues of aging, caregiving, health, and long-term care. Contact McCann through his website for information.