The government wants you to plan on paying more of your own late-age expenses. If you won't, you'll have to pay more taxes to keep the public programs afloat. The middle-class elderly rely on this program, too. But Medicaid can't go on this way. D.C. The cost of their care will butcher state budgets unless new sources of financing can be found.
Private insurance is one such source.
Starting next year, taxpayers who itemize will be able to tax-deduct part or all of their premiums. You'll lump this write-off with the rest of your medical expenses, deductible to the extent they exceed 7.5 percent of your adjusted gross income. That's not a huge incentive to buy. Still, more employers should make LTC plans available and affordable. Employees' parents and spouses may qualify for company coverage, too.