Long-term care policies and programs are determined in the United States by 50 separate state governments, each with different demographics, economies, and political philosophies. For many years, the main direction of long-term care state policy was to support the institutionalization of frail elders and people with disabilities. As individuals with disabilities and their families began to advocate and push for greater choice and for increased opportunities to remain in their homes and communities, states began to broaden their focus on home and community-based care services.
As a result, several states have proposed implementing a new public long-term care financing program based on the Washington Cares Fund. The Washington Cares Fund provides a long-term care benefit for Washington residents through a mandatory .58% payroll tax paid by employees through their employers. For people who cannot afford, or won’t health qualify for private long-term care insurance, this fund can provide helpful care at home and support financing the professional home caregiver industry.
Individuals who already own or plan on owning private long-term care insurance, have the option to be exempt from the payroll tax. Washington set a deadline for proving exemption last year, and the result was a rush of people to purchase LTC insurance through their employers or financial advisors.
Many of the proposed programs could also include a payroll tax opt-out for people who own private long-term care insurance. However, it is not certain that states that adopt plans will allow for an opt-out period to buy coverage. Check out below for the states that are in the process of implementing similar long-term care legislation.