“Layin’ it on the Line: The long-term care crisis – why the government may force you to buy coverage,” by Lyle Boss, St. George News
“Here’s what proactive retirees are doing right now:
- Securing private coverage early.
By purchasing a tax-qualified long-term care policy—or a hybrid life insurance or annuity with long-term care benefits — you’re positioned to opt out if (or when) your state introduces a mandate. - Using retirement accounts strategically.
Thanks to IRS rules under Section 7702B and 72(e)(11), retirees can use qualified funds — like IRAs or 401(k)s — to fund long-term care benefits nearly tax-free.
This means you can reposition a portion of your retirement money to protect against future long-term care costs without triggering new taxes. - Combining long-term care with income planning.
Modern fixed index annuities now offer 2-of-6 ADL (Activities of Daily Living) riders that double or triple your income if you need care. These solutions provide both growth potential and built-in protection against future health costs — without paying for “use-it-or-lose-it” traditional insurance.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
This critique of WA Cares is mostly right on including its recommendations just cited. What’s wrong is that the catastrophic LTC spending he claims for home and institutional care is the exception, not the rule. There is no evidence of widespread ruinous LTC spend down. Only 6.5 percent of LTC spending comes from personal savings, about $41 billion nationally, a tiny fraction of the $97 trillion Americans hold in retirement savings, home equity and life insurance. Want to know what’s really going on? To make sense of what ails LTC, read the Paragon Health Institute’s “Long-Term Care: The Problem” and “Long-Term Care: The Solution” and watch this “virtual LTC event” featuring age wave visionary Ken Dychtwald and leading LTC researchers. To find ample private funds for LTC, check out “Medicaid’s $100+ Billion Leak.” For what not to do, see “Medi-Cal-amity: California’s Reckless Expansion of Medicaid Long-Term Care to the Affluent.” Much more on long-term care here.