A family crisis occurs daily in America when a loved one requires long-term health care. It is at that time many Americans discover that long-term health care is their responsibility.

Matt McCann, a leading expert in long-term care planning, told a group of insurance agents and financial planners in Utica, New York, that this is an avoidable crisis.

"It doesn't matter why families are unaware, but when a family member, usually an older parent, needs help with daily living activities or supervision because of dementia, families discover that they are generally on their own. This is when the family crisis starts."

Health Insurance and Medicare Offer Limited LTC Benefits

McCann said many people think that health insurance, including Medicare or supplements, pays for long-term health care costs. Outside of a minimal amount of skilled services, the responsibility falls on family income and assets.

"Medicaid requires an individual to have little or no income and assets to qualify for the Medicaid long-term care benefit. Unless someone has Long-Term Care Insurance, they will decide how to spend their loved one's savings on care or decide which sibling will become a caregiver. Neither are ideal options."

LTC Tax

Several states, including New York, are considering instituting a state long-term care program. Taxpayers will find a new tax on earned income for those who do not own qualified Long-Term Care Insurance. The state will provide a minimal long-term care benefit, but McCann says this is not a plan for long-term care.

"States like New York are looking to follow the plan the State of Washington has implemented, but the amount of benefits for long-term care can hardly be called long-term care. Long-Term Care Insurance will not only provide actual benefits for long-term care but will protect savings, ease family stress, and provide access to quality care options. Oh, and yes, avoid the tax."

Long-Term Care Insurance is Helpful

McCann said that Long-Term Care Insurance makes common sense for many people as a vital part of retirement planning. However, McCann said you must be proactive and obtain coverage soon than later.

"LTC Insurance is medically underwritten, so someone cannot purchase a plan once their health has already declined or they need care now. But to avoid these state taxes, an individual must have a policy to avoid the tax. You don't buy an LTC policy just to avoid a tax, but the tax should be a strong motivator to get coverage now."

Tax Breaks Instead of Taxes

With long-term health care on many Americans' minds these days, a new study from the Associated Press-NORC Center of Public Affairs says that most people support tax breaks for those purchasing Long-Term Care Insurance.

McCann said federal tax incentives are in place for some people and businesses. A handful of states, including New York, have state tax incentives available when you own a qualified Long-Term Care Insurance policy.

A qualified Long-Term Care Insurance policy must follow federal guidelines under Section 7702(b) of U.S. Code. It will allow the policyholder to avoid any future tax. The policies also include consumer protections, regulated benefit triggers, and tax incentives as mandated by federal law.

McCann noted that federal legislation would allow the use of money from qualified retirement accounts (like a 401(k)) to pay for a qualified Long-Term Care Insurance policy without penalty. If it becomes law, it will free up money that people may need to purchase coverage.

LTC Insurance is Affordable for Many People

However, many people find Long-Term Care Insurance very affordable, especially if they obtain coverage when they are healthy and younger. Most people are getting coverage in their 50s, according to McCann, but he says it will get even younger in states implementing the tax.

"The consequences of future declining health and mobility problems affect families and finances. Being proactive is essential to safeguard assets, avoid dependency on loved ones, access quality care, and even avoid a tax."

Patnership Long-Term Care Insurance

McCann also noted that most states participate in the long-term care partnership program giving policyholders additional dollar-for-dollar asset protection.

McCann is licensed in all 50 states and the District of Columbia. He represents all the major brands in long-term care planning. His unique process allows you to speak with him on the phone and view his computer screen, allowing someone to become educated about options, research, and shop safely and easily. 

Insurance premiums are regulated, and every insurance company must file its products and pricing with each state for approval before being allowed to offer any product to a consumer. 

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