Long-Term Care Legislative Updates

Long-Term Care Legislation Updates

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.


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Because of the implementation of this payroll tax and three additional reasons, buying long-term care insurance at a younger age makes sense.

  • The cost of waiting: The longer someone waits to buy LTC Insurance, the higher their “entry age” premium will be. That is why before birthdays is a good time to let people know what their older age premium would be and how they could save money.
  • Health underwriting Insurance products are medically underwritten, so the odds of being approved for coverage declines rapidly as we age. That's because each year the odds increase that someone will be diagnosed with a health issue that may mean the option of insurance is off the table.
  • Risk tolerance: Knowing that a LTC Insurance plan is in place that will provide a pool of money for potential future care should give someone planning for retirement some peace of mind and perhaps allow them to be slightly more open to higher return investment options.

If you have questions or would like to start your long-term care policy, contact your CBIZ Individual Insurance Solutions team today.