Health Savings Accounts are one of the blessings bestowed on us by the Bush Administration in 2003. When considering HSAs and Long term care insurance, be sure to grab the latest copy of Form 502 from the IRS.  That's the guide that gives you up-to-date figures for how much you can deduct from your HSA for medical expenses.  For 2008, the figures are on Page 11.  As an example, an individual age 61-70 can deduct $3,080 per person using an HSA.  This is fairly generous based on what premiums for these age limits typically run.

Of the stipulations, your LTC policy must be tax qualified (read our article or the FCIC article.) and not deducted otherwise, such as through a tax-free distribution from a qualified retirement plan.  Other than that, using an HSA to pay for long-term care insurance can be a smart move, and is something you should discuss with your CPA. 

As an insurance agency, we cannot offer tax advice and you are much better off getting true professional assistance with this.  However, we can provide you a comprehensive comparison of the largest and most reputable long-term care insurance providers in the business.  Our unique model allows you to compare all of the major players in the business without having to set a sales appointment and suffer through the hard sell.