By AP/KWMU
Jefferson City, MO – The Missouri House gave initial approval Wednesday to bigger tax breaks for people who buy insurance policies to cover their eventual nursing home care.
Current law allows Missourians to deduct as much as 50% of long-term care insurance premiums. The bill in Jefferson City would up that to 100%.
Supporters hope the added incentive would encourage more people to buy such insurance, which in turn could help lower Medicaid costs down the road.
The change is expected to cost the state $2.7 million a year. JEFFERSON CITY, Mo. (AP) - People who invest in insurance policies to cover their eventual nursing home care would get a bigger tax break under a bill that won initial approval in the House today. Under current law, people can deduct up to 50 percent of long-term care insurance premiums from their taxes. The bill would move that to 100 percent. Supporters hope the added financial incentive would encourage more people to buy such insurance, eventually easing the state's burden to cover nursing home care through Medicaid. The change is expected to cost the state two-point-seven (m) million dollars a year.