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Maine.gov > PFR Home > Insurance Regulation > FAQ > Long Term Care

Frequently Asked Questions - Long Term Care

I understand that for some long-term care policies the insured person may deduct premiums on the Maine income tax return. For what policies is this deduction available?
You should consult with a tax or financial advisor because of the complex nature of the answer. There are three kinds of long-term care policies for which the deduction is allowed. First, any policy stating it is intended as "qualified" under the Internal Revenue Code for a deduction on the insured's federal income tax return automatically permits the insured to claim a deduction as well on their Maine return. This automatic qualification occurs irrespective of the date when the federally qualified policy was first issued. The result is that a policy qualified for federal income tax purposes is qualified for a Maine income tax deduction.
Second, any policy issued in Maine during 1991 through 1999 that has been "certified" in writing by the Maine Superintendent of Insurance as eligible for state income tax incentives allows a premium deduction on the state return. Maine Revenue Services maintains a list of these certified policies. The list can be found on and reproduced from the Bureau's website.
Third, any policy delivered in Maine beginning in 2000 that is not federally tax qualified (i.e., premiums cannot be deducted on the federal tax return) may be entitled to a deduction on the Maine tax return when two conditions have been met. The policy form must be approved by the Bureau for marketing in Maine and the insurer must request from the Superintendent a letter certifying the policy as entitled to state income tax incentives. For more information, see 24-A M.R.S.A.§5075-A.

What is an elimination period?

For long-term care insurance, it is the number of days that you pay out-of-pocket before the insurance company begins to pay benefits.

What is the Maine Long-Term Care Partnership Program?

Before July 1, 2009, insurers offered only traditional long-term care insurance policies. Now insurers can sell partnership policies as well. A list of Bureau approved partnership policies is posted here. If you have a long-term care partnership plan, you may be able to keep assets of a greater value than normally allowed for enrollment in MaineCare (Medicaid).  MaineCare cannot recover this higher asset value from your estate.
For you to be accepted by MaineCare, you also must meet income eligibility limits. The Partnership Program does not affect income eligibility.

Where Can I Learn More About Long-Term Care Policies?

We have a Guide to Long-Term Care in Maine available online, which provides additional information, including a list of insurance companies currently selling long-term care policies in Maine.  If you prefer to receive this publication by mail, please call our Consumer Health Care Division at 1-800-300-5000 (in Maine) or 207-624-8475, or email us at insurance.pfr@maine.gov.

 

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Last Updated: November 19, 2014