January 8, 2024
Dear Residents:
We have calculated the medical costs that are associated with the monthly fee and entry fee using the per-capita (actuarial) method for residents whose contracts exclude prescription drug coverage. The actuarial method assumes that the per-capita amount will continue to apply regardless of the level of care.
Based on the characteristics of the residents in 2023, the prepaid health care amount has been calculated on a per-capita basis, reflecting that health care is utilized on an individual basis. The monthly fee medical deduction for 2023 has been determined to be $1,535 per month per resident. For new residents who paid an entry fee in 2023, the medical deduction has been determined to be $120,000 for a single occupancy and $202,000 for a double occupancy.
The cost of medical care combined with any other allowable medical expense you have paid in 2023 is deductible only to the extent they exceed a specified percentage of your adjusted gross income. Please make reference to the instructions for completing Schedule A of the Federal Tax Form 1040.
As always, please consult your personal tax advisor if you have any questions concerning your allowable medical deduction for both Federal and State income tax.
Sincerely,
Brent B. Edgerton
Chief Financial Officer