“Wisconsin considers tax-protected long-term care accounts,” by Kimberly Marselas, McKnight’s LTC News

“Wisconsin residents will be able to invest in long-term care funds set up like popular, state-based college savings plan, if legislators get their way. A bipartisan bill making its way through the state assembly would allow people to contribute $5,500 to $8,500 per year, depending on age, and withdraw the money tax free for qualified long-term care. . . . The sponsors and aging advocates who helped draft the bill describe it as an alternative to costly long-term care insurance designed to meet needs not covered by Medicare. But even as Wisconsin moves forward, Nebraska has cancelled its long-term care plan — the first of its kind in the nation — due to lack of participation.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

The reason tax deductions don’t work very well to encourage the purchase of LTCI is that they do not address the real problem, i.e., that easy access to Medicaid after the insurable event occurs desensitizes the public to LTC risk and cost by offsetting most of the liability after it’s too late to insure privately.

Wisconsin considers tax-protected long-term care accounts

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