In a letter to President Trump and Congressional leadership, a leading expert on long-term care planning calls for the medical expense deduction to be maintained at its current level for 2019.

Matt McCann, a nationally known Long-Term Care Insurance expert, told a group of insurance agents and financial planners that it is important public policy to keep the current deduction. The current 7.5% threshold was temporarily extended through 2018 in the 2017 tax cut bill which was signed by President Trump. The tax law temporarily lowered the medical expense threshold from the existing 10% at the time to 7.5%. It is scheduled to be returned to 10% for tax-year 2019 unless Congress and the President act soon.

"Many Americans, especially seniors, need this deduction. With the high cost of health care, this deduction helps many American families. When you add the high cost of long-term care services and supports this deduction becomes a greater priority for many," McCann said.

McCann reminded the group that Long-Term Care Insurance can be deducted as a "medical expense" for many people. He said as people get older they use this deduction which makes their long-term care plan even more affordable.

The American Association for Long-Term Care Insurance says millions of people who purchased tax-qualified Long-Term Care insurance policies might lose the option to deduct premiums if the deduction reverts to 10% of AGI. While other tax incentives exist, for self-employed individuals and business owners, the itemized medical deduction on individual returns is often used.

"It is important public policy to provide some relief for hard-working American families. However, many Americans are not aware of the Long-Term Care Insurance tax incentives or the Long-Term Care Partnership Program which most states participate in. It is very important to educate the public of the need to plan for the financial costs and burdens of aging and the incentive programs which are available for many," McCann said.

McCann said most states participate in the Long-Term Care Partnership program which provides additional dollar-for-dollar asset protection if a person owns a qualified Long-Term Care Insurance policy. However, he noted that many consumers are just unaware of their options.

"Texas has done an outstanding job of promoting the Texas Long-Term Care Partnership Program. This is not the case for most states. For many American families, the partnership program provides essential asset protection. The partnership program, along with tax incentives, gives consumers many reasons to safeguard savings and reduce the tremendous burdens extended care places on loved ones," McCann explained.

McCann's letter urged President Trump and Congress to take immediate action to maintain the tax deduction threshold.

"While the economy has improved dramatically for many Americans, we must realize the impact the costs of health care, especially long-term care, as on people, especially after they retire. We must be able to help American families afford quality care and help them obtain and maintain Long-Term Care Insurance," McCann said in the letter.

People purchase Long-Term Care Insurance, usually before retirement, as part of their overall retirement planning. The cost of long-term care services is high and most of the care is not covered by health insurance or, after age 65, Medicare and Medicare supplements. Long-Term Care Insurance pays for quality care options at home or in a facility.

"Caregiving is hard on family members. Paid care drains savings and adversely impacts income and lifestyle. While Long-Term Care Insurance is very affordable, the tax deductions make it easier for consumers, especially after retirement. 

As one of the leading Long-Term Care Insurance specialists in the country, McCann helps people nationwide with his unique process where they speak with him on the phone while seeing his computer screen on their computer. He works with all the major companies in Long-Term Care and is endorsed by the American Association for Long-Term Care Insurance.

Consumers can learn more and get free quotes from all the major companies:  https://mccannltc.net/free-quotes. You can find the cost of care in your state, as well as the availability of partnership plans and tax incentives here: https://www.ltcnews.com/resources/state-information 

McCann said the best time to add Long-Term Care Insurance is usually in your 40s or 50s as many people can take advantage of both low premiums and even preferred health discounts.