Long-Term Care Insurance Payments

Long-term care insurance policies vary greatly, requiring that each policy be carefully reviewed.  A recent DCF memorandum provides the following guidelines for determining whether or not cash received from a long-term care insurance policy will be considered income.

• Reimbursement for actual medical expenses incurred is not considered income. 

• Cash paid from an insurance policy as a flat rate benefit without regard for actual per diem charges or expenses incurred is considered income.