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Understanding Long Term Care Legislation
In 2019 the Washington state legislature established the Washington Cares Fund, the nation’s first publicly funded long-term care benefit for eligible workers, to address the future LTC crisis posed by an aging population. This sparked a national conversation about the need for long-term care planning as state Medicaid systems struggle to cover the 70% of Americans that will need LTC in their lifetimes, only 10% of whom have insurance that will pay for it. Many other states have followed suit and are in various stages of evaluating public LTC programs of their own. Depending on how each state designs their plans, qualifying LTC insurance policies may allow individuals to opt out of the payroll tax.
Federal
Federal | H.R 8820 Improving Access to Long-Term Care Insurance Act bill.
Propose an above-the-line deduction for premiums paid on LTC insurance in an effort to make LTC insurance more affordable and accessible.
California
California | Feasibility Study - Assembly Bill 567
- Click here for the Oliver Wyman Feasibility Report FAQ
- Click here for an Actuarial Analysis by Oliver Wyman
- Click here for the AB 567 Actuarial Analysis and Next Steps
- Click here for the AB 567 Clarifications
Introduced in 2019, the bill establishes The Long-Term Care Insurance Task Force to explore the feasibility of developing and implementing a culturally competent statewide insurance program for long-term care services and supports. This includes the design of the program including eligibility, financing, benefits, and other key topics related to administration.
In December 2022, the Task Force finalized their Feasibility Report, in which five (5) plan designs were proposed. In December 2023, Oliver Wyman completed their analysis of the 5 plan designs and provided to the legislature.
| Plan Design | Lifetime Plan Benefit | Monthly Benefit |
| 1 | $36,000 | $1,500 |
| 2 | $110,400 | $4,600 |
| 3 | $36,000 | $3,000 |
| 4 | $81,000 | $4,500 |
| 5 | $144,000 | $6,000 |
Connecticut
Proposed Bill - SB 903
Submitted in January 2023 to conduct a study of Long-Term Care Needs. If approved, the goal is to complete the study by July 1, 2024
Georgia
Proposed Bill - HR 1276
Proposed constitutional amendment to create the Long-Term Services and Supports Trust Fund to reimburse LTC services incurred by eligible individuals.
Kentucky
House Joint Resolution 100
A joint resolution directing the Department of Insurance to create a task force to explore the feasibility of implementing a statewide insurance program for long-term care services and supports.
Maryland
Proposed Bill HB0349
Legislation proposed that calls for a study to be conducted on LTC Insurance & State Programs. The bill requires the Department of Aging to contract with an independent consultant to complete an insurance study on public and private options for leveraging resources to help individuals prepare for long-term care services and support needs; and requiring the Department to submit an interim report by December 31, 2024 summarizing the progress of the study and a final report by December 31, 2025 to the Governor and General Assembly on the results of the study.
Massachusetts
Proposed Bill -H.652
Submitted in January 2023 the bill proposes the establishment of a 15-member special commission to study and provide recommendations for establishing a statewide LTC insurance program. If approved, the commission's report is due within one year following the effective date.
Minnesota
Feasibility Study - HF 1664
This feasibility study proposes a transformative long-term care service and support financing study called, “Own Your Future.” The Minnesota Department of Human Services Aging and Adult Services Division has contracted with FTI Consulting Inc. (FTI) to conduct an innovative study aimed at increasing access to long-term care services and supports (LTSS) for Minnesota’s older adult population.
New York
SB S9082
Senate Bill 9082 was introduced in 2024. Similar to SB 8462 with a few a few notable differences.
Pennsylvania
Proposed Bill -HB 844
Introduced in March, 2023 to provide for long-term care services and supports, establishes the Long-Term [Care] Services and Supports Commission, the Long-Term [Care] Services and Supports Council and the Long-Term [Care] Services and Supports Trust Fund; imposing duties on the Department of Human Services and the Department of Revenue; and imposing a payroll premium.
Vermont
Proposed Bill - H444
Submitted to committee in March 2023, the bill proposes the study and design of a Long-Term Care Trust Fund.
Washington
Law Passed - The WA Cares Act in 2019
In January 2022, Washington’s governor delayed parts of the WA Cares implementation by 18 months (most notably delaying the collection of the WA Cares premium tax) until July 1, 2023, and expanded the number of people who qualify for permanent exemption from payroll tax and coverage under the program. Other adjustments included the vesting requirements for older workers and new tax exemptions for U.S. military veterans with a qualifying disability. Previously, there was a ten-year vesting requirement for participants to receive benefits. Now, workers born before January 1, 1968, that have not met the vesting period can still receive partial benefits. Premium deductions began on July 1, 2023, with benefit payouts starting July 2026. Click here to learn more about WA Cares Fund Exemptions.
June 6, 2024 - The following changes to WA Cares Fund are effective:
- 07/2026 – WA Cares Fund Benefits are portable for residents who move after paying into the program
- 07/2030 – Out of state individuals may access the benefit
December 10, 2024 - HB 1025 - Prefiled for Introduction. Link to Bill: Click here.
- AN ACT Relating to reopening the exemption from the long-term services and supports trust program for employees who have purchased long-term care insurance; and amending RCW 50B.04.085.
- Proposes the following amendments - An employee who attests that the employee has long-term care insurance purchased before November 1, ((2021)) 2027, may apply for an exemption from the premium assessment under RCW 50B.04.080. An exempt employee may not become a qualified individual or eligible beneficiary and is permanently ineligible for coverage under this. The employment security department must accept applications for exemptions only from October 1, 2021, through December 31, ((2022)) 2028
December 10, 2024 - HB 1026 - Prefiled for Introduction. Link to bill: Click here.
- AN ACT Relating to protecting spouses by allowing the sharing of 2 benefits under the long-term services and supports trust program; and adding a new section to chapter 50B.04 RCW