Senate Gets LTC Tax Bill

Current law permits individuals to deduct LTC insurance premiums only if they itemize and only if health care expenses exceed 7.5% of their adjusted gross income.

S. 2337 also would adopt consumer protection rules similar to those included in an LTC insurance model developed by the National Association of Insurance Commissioners, Kansas City, Mo.

The American Council of Life Insurers, Washington, welcomed introduction of the bill.

“Millions of Americans have used cafeteria plans and FSAs to help protect their families and provide important financial protection,” ACLI President Frank Keating says in a statement. “Including long term care insurance will add an important piece to Americans’ financial security puzzle.”