Hi Rhoder19,
I'm with you on this but will add some perspective.
The per-diem benefits that my parents have received in the past involved paperwork (bills and care assessments) being sent to the long term care insurance company. In turn, my parents received payments/benefits from the long-term care insurance company that showed the various costs (care costs, food/lodging, etc). Generally, the per-diem benefits exceeded these costs. However, the fact that they are sending statements in this manner does imply (in my mind) that these are covering (or reimbursing) these costs. That said, I get your take on definition of reimbursement.
The fact is that by not being able to take a medical deduction for these costs (if that is the case), it is an EFFECTIVE tax on the benefits.
I've already done my parents taxes and have neglected the so-called reimbursed costs so would have to file an amended return if you or someone else comes up with something definitive.
Not that it matters, but my mom's benefits have expired, which is a long story involving bankruptcy of long-term care company.
Thanks.
