Ch 6

Where do most people receive long-term care services?

In their home

Eric, aged 80, and Victoria, aged 75, file their 2020 federal income taxes jointly. How much can they claim as a medical expense for itemized deductions for their two long-term care policies?

$10,860

Long-term care can be extremely expensive. Which of the following statements is (are) correct regarding the cost of long-term care? I. Medicare is a practical way to pay for long-term care. II. Most people who need long-term care will receive at least some financial assistance from Medicaid.

Neither I nor II

Janet is 83 years old and has been blind for 4 years. She is no longer able to drive or cook for herself. Assuming she has a qualified long-term care plan, is she considered chronically ill?

No, cooking, and driving, and being able to see are not considered ADLs.

All of the following are a requirements of a qualified long-term care insurance policy EXCEPT:

The contract must offer to cover pre existing conditions.

All of the following are considered activities of daily living (ADLs) EXCEPT

cognitive ability.

Which of the following is correct regarding how employer payments for long-term care are treated for federal income tax purposes? Employer payments for long-term care group premiums are

deductible to the employer and not taxable income to the employee.

A chronically ill person is entitled to receive benefits under a long-term care policy and is defined as someone who is unable to perform activities of daily living for a period of at least days.

Two; 90

Leo, Declan, Anthea and Willa all live at the South Hampton Home for Distinguished Musicians. Which of these meet(s) the criteria for being chronically ill under qualified long-term care provisions? I Leo, who cannot drive, hear, or dress himself II Declan, who cannot speak, feed himself, or dress himself III Anthea, who cannot hear, walk, or feed herself IV Willa, who cannot drive, walk, or dress herself

Declan only

Which of the following is (are) required for an insured to qualify for long-term care benefits? I. The insured is unable to perform two of the six ADLs for at least 90 days. II. The insured has substantial cognitive impairment requiring substantial supervision for his or her protection.

Either I or II