Administration’s Proposed Deduction For Long-Term Care Insurance Premiums Likely To Be Ineffective and Costly, and Of Primary Benefit To Higher-Income Individuals

Publication Date: February 2004

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Edwin Park

Research Area: Health

Keywords: Economic projections; Economic inequality; Income diversity; Household income

Type: Report

Abstract:

As part of its fiscal year 2005 budget, the Administration has again proposed a deduction for the purchase of long-term care insurance. This proposal would provide little or no assistance to most low- and middle-income families and thus is unlikely to be very effective in helping more people secure long-term care coverage. Instead, it would primarily serve as another tax-cut benefit disproportionately geared toward the high-income individuals who least need assistance and who can already afford long-term care insurance.