January 2022 API – The Method Behind the IRS’s Chronic Illness Per Diem Allowance

After so long a period of low inflation and low interest rates, higher inflation naturally leads to uncertainty and questions. For life and health insurance professionals, one key question is how, in an inflationary environment like the one we’re experiencing, can a government index linked to the cost of living go down? Specifically, how and why did the per diem limitation for qualified long-term care and accelerated benefit life insurance contracts decrease to $390 for 2022?