At-a-Glance: New Dollar Amounts for 2014

 Medicare

(The following is a brief review of the applicable deductibles and co-pays for 2014, and is NOT an in-depth review of costs and coverage.  For an in-depth review of the details regarding Medicare coverage and costs under Part A and Part B, visit the Medicare website @ www.medicare.gov .)

Part A—Deductibles and Co-pays

 ·  Inpatient deductible per benefit period:  $1216

 ·  Inpatient coinsurance (per benefit period) for days 1-60:  $0

 ·  Inpatient coinsurance (per benefit period) for days 61-91:  $304.00 per day

 ·  Inpatient coinsurance (per benefit period)for days 91-150 (lifetime reserve days): $608.00 per day

·   Inpatient beyond lifetime reserve days: all costs

·  Coinsurance for days in a skilled nursing facility (per benefit period):

      Days 1-20:  $0 per day

      Days 21-100: $152.00 per day

      Days 101 and after: individual fully responsible

(Note:  In early 2013, a court approved settlement agreement was reached in the case of Jimmo v. Sebelius, which resolved the matter of when Medicare coverage is available for a stay in a skilled nursing facility.  The standard (assuming all other necessary criteria for Medicare coverage is met), as articulated in the Jimmo case is whether the skilled services of a health care professional are needed to maintain the individual’s condition, or to prevent or slow the individual’s decline and NOT whether the Medicare beneficiary will “improve.”)

Part B—Premiums and Deductibles

· Part B monthly premium:  $104.90 per month (for most people)

 · Part B yearly deductible:  $147.00 per year (after meeting the deductible, the insured pays 20% of the Medicare approved amount for services)

 Medicaid

 · Community Spouse Resource Allowance (CSRA): 

            –$109,560.00 (Per the SMART Act, the 2014 CSRA in Illinois remains unchanged and remains below the maximum federal allowance for 2014.)

 · Community Spouse Monthly Maintenance Needs Allowance (CSMMNA):

            –$2739.00 (Per the SMART Act, the 2014 CSMMNA in Illinois remains unchanged and remains below the maximum federal allowance for 2014.)

  Deductibility of Long-term Care Insurance Premiums

 · For the 2014 tax year, the IRS has increased the amount that one can deduct on their taxes for premiums paid on long term care insurance policies.  The deductions, which are based on age, are as follows:

Age on 12/31/14

Maximum Amount Considered Health Ins. Premiums

            40 or under                         $370
            41 to 50                         $700
            51 to 60                         $1400
            61 to 70                         $3720
            Over 70                         $4660

 Estate and Gift Tax Adjustments

· Federal estate tax exclusions: $5.34 million

· Federal gift tax exclusions: $5.34 million

· Federal generation-skipping transfer tax exclusion: $5.34 million

· Federal annual gift tax exclusion remains unchanged at: $14,000

· Illinois estate tax exclusion remains unchanged at:  $4 million

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