Great news! Recent changes in Medicare allow folks to save, invest and then spend money tax free! Money deposited in the new health spending accounts can be invested and then withdrawn without taxes to pay for health costs including insurance premiums, prescription drugs and long-term care services. Accounts are lifetime and at death can be transferred to a spouse tax free.

Designed for people with high health insurance deductibles, individuals can deposit the annual amount of the deductible, up to $2,600 a year. Families can sock away up to $5,150.

So does this mean we no longer need long-term care insurance? With the cost of long-term care currently at an average of $50,000 a year and increasing much faster than inflation, a couple would have to salt away $125,000 just to cover an average stay of 2.5 years in a nursing home or assisted living facility. And that's just for one spouse! If both spouses needed care, the bill could easily come to $250,000 or more.

The purpose of Medicare reform was not so you could hand over your nest egg to a nursing home.

The new health spending accounts are an ideal way for you to pay your premiums for long-term care insurance with tax free dollars and still have money left to cover medication and health care.

The new Medicare rules will help individuals cover health care costs, but remember, it's still your money!