The article “Buyer Beware” ( JofA, Aug.99, page 27) does not mention that long-term care insurance policies issued prior to January 1, 1997, are automatically tax qualified, as provided by the Health Insurance Portability and Accountability Act of 1996.
Pre-1997 policies were grandfathered and are tax qualified. That point does not influence any current decision a CPA would make in evaluating the new “tax qualified” policies.
The information could be valuable because someone who owns a grandfathered policy would not want to purchase a new tax qualified policy, thinking it necessary to obtain some tax advantages that already exist with the pre-97 policy.
Richard J. Bergstrom
California State Polytechnic University