LONG-TERM CARE INSURANCE — LATEST NEWS
Washington State's WA Cares Fund has brought the issue of state-mandated long-term care funding to the forefront of national conversation. Other states are now watching closely and developing their own programs.
THE WASHINGTON STATE MODEL
Washington State implemented a payroll tax to fund LTC benefits for residents. Employees without qualifying private LTC insurance were subject to the tax. The program demonstrated that:
- State-sponsored benefits are typically limited in scope and duration
- Private LTC insurance provides far more comprehensive coverage
- Purchasing a private policy can exempt individuals from state taxes
WHAT CALIFORNIA IS PLANNING
The California Long Term Care Task Force, established under AB 567, is developing recommendations for a California LTC program. The Task Force is examining various funding mechanisms, including a payroll tax similar to Washington's WA Cares Fund.
ACT NOW BEFORE IT'S TOO LATE
Once California implements a mandate, demand for private LTC insurance will surge and premiums will increase. Purchasing a policy now — while you are younger and healthier — locks in lower premiums and may exempt you from future state taxes.
TO LEARN MORE
Contact Bert Payne
(925) 708-6501
bert.ltccpas@gmail.com