It’s Tax Time!

In the U.S., Continuing Care Retirement Community (CCRC) fees are generally not fully tax-deductible. However, some portions of the fees might be, depending on how they are structured.Heres how it typically breaks down:1. Monthly Maintenance Fees:These fees usually cover services such as meals, housekeeping, maintenance, and security. These are typically not deductible as medical expenses.2. Medical or Health-Related Fees:If part of your CCRC fees goes toward medical care (for example, nursing care or rehabilitation services), that portion may be deductible as a medical expense. The IRS allows you to deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI), but you need to keep detailed records to substantiate the medical portion of the fees.3. Entrance Fees:The upfront, lump-sum entrance fee or buy-in that you pay when you move into a CCRC is typically not deductible. However, if any part of the entrance fee is allocated for healthcare services, that part could potentially be deductible if it meets the criteria for medical expenses.4. Long-Term Care Insurance Premiums:If you are paying for long-term care insurance as part of your CCRC arrangement, those premiums may be deductible as a medical expense, depending on your age and the IRS guidelines for that year.To determine what part of the fees, if any, might be deductible, its a good idea to:Keep records of your payments and the breakdown of what they cover.Consult a tax professional who can guide you based on your specific situation and any changes to tax laws.Tax laws can vary, so its always best to get tailored advice.

Medicare has been changing yearly and 2026 will be no exception. What is ahead for Medicare this fall and why?Carriers are still feeling the effects of the Inflation Reduction Act, which passed in 2022, but just took full effect in January of 2025. Beginning January 1, 2025, people with Part D plans through traditional Medicare and Medicare Advantage plans with prescription drug coverage, won't pay more than $2,000 over the calendar year in out-of-pocket costs for their prescription medications, the donut hole or coverage gap is eliminated and there is a new payment plan to spread drug costs through the year. Those changes came at a cost to other benefits. The Inflation Reduction Act significantly increased the carriers expenses and in response benefit cuts occurred for 2025 and will continue for 2026. Carriers had to absorb the steep cost increase for the mandatory prescription drug plan changes by balancing the budget, which included increases in beneficiaries copays, deductibles added to plans, the plan maximum out of pocket increased, non-medical benefits were reduced, a prescription drug deductible was added, and prescriptions were re-tiered or eliminated from the list of covered drugs. 2026 will see further adjustments as the carriers remove most benefits deemed non-medical. Seniors who have grown accustomed to benefits such as an over-the-counter allowance or food subsidy may see those benefits sharply reduced or eliminated this fall. Plans must be submitted to Centers for Medicare & Medicaid Services for approval in early spring to be ready for the enrollment period in fall to be active for the following calendar year, so carriers have had little time to study the impact of the Inflation Reduction Act on overall costs. Insurance moves slowly. The changes we are feeling in 2025 are the result of a bill passed in 2022 and will continue to affect plans in 2026. This fall will feel like a continuation of the benefit cuts seniors faced in the fall of 2024 as carriers work to balance the budget while considering the increased prescription costs and trying to maintain the plan benefits seniors rely on. For more information visit: aismedicareandmore.com Editors Note: This article was submitted by Jolynn Allen with AIS Medicare & More.  Jolynn is the owner of AIS Medicare & More and may be reached at:  719-404-3202

In Colorado, In-Home Supportive Services (IHSS) is a Medicaid-funded program designed to assist individuals with disabilities or elderly individuals who need help with daily activities. These services enable individuals to live independently in their own homes rather than in institutional settings. IHSS provides support with tasks like personal care, housekeeping, meal preparation, and medication management.Eligible participants must meet specific criteria, including being a Colorado resident, requiring assistance due to a disability, and meeting income and resource limits. Services are tailored to each individual's needs and are delivered by trained caregivers, who may be family members or professional aides.IHSS is an essential resource for people with disabilities or the elderly, enhancing their quality of life by promoting independence while providing necessary care. It also alleviates the financial burden of long-term institutional care, offering a more cost-effective and personalized solution for those in need. Editor's Note: This article was submitted by Amazing Care Home Health Services. For more information they may be reached at 303-755-3170.