Qualified long-term care insurance refers to a specific type of insurance policy that meets certain criteria set by the Internal Revenue Service (IRS) for favorable tax treatment. To be considered qualified, a long-term care insurance policy must adhere to the requirements outlined in the Health Insurance Portability and Accountability Act (HIPAA) of 1996. These requirements include providing coverage for necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services in a setting other than an acute care unit of a hospital. Additionally, the policy must not pay benefits that exceed certain daily or monthly limits, and it must be guaranteed renewable. The key distinction of qualified long-term care insurance is its eligibility for tax advantages, such as the ability to deduct a portion of the premiums as a medical expense, and the potential for benefits to be received tax-free. It's important for individuals considering long-term care insurance to understand the specific criteria that define a policy as qualified, as this designation can have significant financial implications.