New York Long Term Care Trust Act
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New York Long Term Care Trust Act
Otherwise known as, Senate Bill S9082, enacts the “New York Long Term Care Trust Act” and establishes the New York Long Term Care Trust Program.
This bill will establish the New York Long Term Care Trust Program to provide long term care benefits for eligible residents. New York residents who have paid the required payroll tax withholdings and are in need of assistance with at least three activities of daily living (ADLs) as determined by the department of health will be eligible for the program benefit of $36,500.
Why the New York Long Term Care Trust Act?
To implement a new way of supporting the costs of long term care by creating a public benefit available to all New York workers for long term care services and supports, financed by a small payroll withholding tax.
How much will the tax be?
Implements a program to collect premium contributions from all employees in the state in a manner similar to income tax withholding and requires the comptroller to set the amount of payroll tax withholding at the amount necessary to sustainably finance the program. A similar program that was enacted in the state of Washington required a payroll tax withholding of .58% for benefits similar to the New York Long Term Care Trust Act.
How can I be exempt from the New York Long Term Care Trust Act?
According to the bill, in order to be exempt from the New York Long Term Care Trust Act, you must own long term care insurance before January 1st of the year in which the law becomes effective. For example, if the law becomes effective anytime in 2024, you must own long term care insurance before January 1, 2024.
The bill summary explains the New York Long Term Care Trust Act this way:
“Provides for an optional exemption from the obligation to pay premiums (which exemption is coupled with a disqualification of the right to receive benefits) for individuals who have had in place private long term care insurance continuously for at least the duration of the calendar year to date prior to the effectiveness of the law, for as long as they maintain those policies.”
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