A. Yes, The Federal Long-Term Care Insurance Program and The Governor Awareness Program.

A. Medicare pays 2%, Medicaid pays 41%, private insurance pays 1%, other pays 5%, and self and family pays 51%.

A. Medical insurance for most Americans is a benefit provided for by their employer, or they have personal coverage due to self-employment. Medical insurance coverage, whether you are a working person or a retiree, provides basic coverage for hospital visits. Most medical insurance at any age provides very little coverage, if at all, for long–term care, whether in a nursing home or at home.

A. It is likely that long-term care insurance premiums will rise as the demand for long-term care insurance accelerates.

A. The new law authorizes states to offer long-term care partnership programs that promise consumers asset protection in exchange for purchasing insurance. The program encourages consumers to buy long-term care insurance in exchange for partial protection of their assets in the event that they exhaust their insurance benefits and must turn to Medicaid.

A. There are many financial services. More recently a new financial service called Life Settlements allows seniors to sell an existing life insurance policy to a financial institution in exchange for an immediate lump sum cash payment.

A. Group insurance is a contract with the group itself rather than with the individuals in the group. Certificates of coverage are issued rather than individual policies. Whereas Association plans are contracts with individual members through the association. Contracts cannot be cancelled as long as the premiums continue to be paid.

A. The accounts are open only to applicants who have a health insurance policy with a yearly deductible of at least $2,650 ($5,250 for families) and no other health coverage, including Medicaid or Medicare and cannot be claimed as a dependent on someone else’s tax return.

A. Health Savings Accounts have a tax advantage. They are tax shelters. These accounts allow rolling money over in the account from year-to-year to build up a medical expense nest egg. Also, people can hold on to their HSA’s even if they change jobs or an insurance company.

A. No. Some employers offer HSA’s to employees and may contribute to the accounts.

A. If the money in an HSA account is used for expenses other than medical expenses you pay income tax and a 10 percent tax penalty.

A. A Health Savings Account wouldn’t be beneficial for someone who doesn’t work for a generous company, someone who retired at age 60 and has chronic illness or cannot afford to put away hundreds or even thousands of dollars for anticipated medical expenses. For them HSA’s may not work.

A. Yes. Alabama, California, Maine, New Jersey, Pennsylvania, and Wisconsin do not follow federal rules regarding tax breaks for HSA’s.

A. Each state has the right to set its own standards for income tax deductions relative to how it taxes the residents of that state, regardless of Federal regulations and rules. For clarification of your situation please contact your income tax preparer, CPA, or contact us, so we may provide information from out network of resources.

A. The U.S. Treasury’s website has additional information about Health Savings Accounts, including answers to frequently asked questions related IRS forms and publications, technical guidance, and links to other helpful websites. Treasury’s HAS website can be found through www.treas.gov (click on “Health Savings Accounts”).

A. With Group Insurance Contracts the insurance contract is a contract with the group itself rather than with the individuals in the group. Certificates of coverage are issued rather than individual policies, whereas Associations Plans are contracts with individual members through the association. Individuals can tailor benefits to their specific needs and budget.

A. No. Association plans cannot be created expressly for the purpose of buying insurance at a discount.

A. The federal program (FLTCIP) is expected to become the nation’s largest employer-sponsored long-term care insurance program. The policies are expected to have lower premiums than those policies available in the private market.

A. President Bush, on December 8, 2003, signed HSA’s into law.

A. Most medical care and services, and dental and vision care, and also includes over-the-counter drugs such as aspirin.

A. Eligibility to contribute to an HSA (Health Savings Account) is determined by the effective date of your HDHP (High Deductible Health Plan) coverage. Annual contributions are dependent upon the number of months of HDHP coverage during the year (count only the months where you have HDHP coverage on the first day of the month).

A. You can generally not use the money to pay for medical insurance premiums, except under specific circumstances, including:

A. Yes, the money can be used to pay medical expenses for yourself, your spouse, or your dependent children.

A. Yes, you can pay the medical expenses of your spouse and dependent children, from your health savings account, even if they are not covered by your HDHP.

A. Non-“qualified medical expenses” include:

A. If you are married, your spouse becomes the owner of the account and can use it as if it were his or her own HSA. If you are not married, the account will no longer be treated as an H SA upon your death. The account will pass to your beneficiary or become part of your estate ( and be subject to any applicable taxes).

A. An HSA is not something you purchase. It is a savings account, which enables you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. The only product you purchase with an HSA is a High Deductible Health Plan (HDHP).

A. Banks, credit unions, insurance companies and other financial institutions are permitted to be trustees or custodians of these accounts. Other financial institutions that handle IRA’s are also automatically qualified to establish HSA’s.

A. You are only allowed to have auto, dental, vision, disability and long-term care insurance that pays medical bills at the same time as an HDHP. You may also have coverage for a specific disease or illness as long as it pays a specific dollar amount when the policy is triggered.

A. Wellness programs offered by employers are also permitted if they do not pay significant medical benefits.

A. No, the policy does not have to be in your name. As long as you have coverage under the HDHP policy, you can be eligible for an HSA (assuming you meet the other eligibility requirements for contributing to an HSA).

A. FSA’s are Flexible Spending Arrangements.

A. You can have both types of accounts, but only under certain circumstances. General Health Reimbursement Arrangements (HRAs) will probably make you ineligible for an HSA.

A. If your employer offers a “limited purpose” or “post-deductible” HRA, then you can still be eligible for an HSA.

A. No. You cannot have an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before your HDHP deductible is met.

A. Funds deposited into HSAs remain in the account and automatically roll over from one year to the next. You may continue to use the HSA funds for qualified medical expenses.

A. You are no longer eligible to contribute to an HSA for months that you are not an eligible individual because you are not covered by an HDHP.

A. If you have coverage by an HDHP for less than a year, the annual maximum contribution is reduced.

A. If you made a contribution to your HSA for the year’ based on a full year’s coverage by the HDHP, you will need to withdraw some of the contribution to avoid the tax on excess HSA contributions. If you regain HDHP coverage at a later date, you can begin making contributions to your HAS again.

A. The U.S. Treasury’s website has additional information about Health Savings Accounts.

A. Medical Reimbursement Plans are set up by an employer.

A. Yes! Qualifies as expenses that are in excess of policy limits.

A. To clarify some of the issues of health care coverage and taxation of benefits, in 1966, Congress passed the Health Insurance Portability and Accountability Act.

A. Most medical insurance policies, including most employer-sponsored medical plans and all Medicare supplemental policies, specifically state that you must spend a minimum number of days in a hospital, then be transferred directly to a participating skilled nursing facility before they will cover the cost of the skilled nursing care.

A. In a comparison of Group long-term care insurance it is important to note the following:

A. The plan’s benefits surpass those of traditional health plans in:

A. Employers can contribute pre-tax money to their employees’ HSAs in lieu of paying premiums toward a traditional health plan.

A. In contrast to typical employer long-term care coverage, the two biggest benefits of true group long-term care coverage are (a) vesting and waiting period requirements target the more valuable longer term employees for the benefit, and (b) employer contribution for the benefit will encourage higher employee participation.

A. Employers who implement true group long-term care plans will be fulfilling a valuable role in the protection of employees from a glaring hole in their current safety nets. While true group long-term care coverage would be less expensive to offer than employers might expect. And an employer sponsored group plan circumvents the need to pay sales commissions, saving 17% to 30% in cost compared to a comparable individual long-term care insurance policy.

A. According to IRC Section 7702B(e) the long-term care insurance and life insurance components of such a combination are treated as separate contracts, a necessity for satisfying Section 7702B’s rule which dictates that qualified long-term care insurance cannot contain cash values, or provide coverage other than for qualified long-term care services.

A. Yes, with an annual contribution cap.

A. The purpose of Medical Reimbursement Plans is to reimburse employees for medical expenses not covered by their regular medical insurance.

A. Reimbursable expenses include dental expenses and expenses that are in excess of policy limits.

A. Yes! The payments received by the employee are income-tax-free.