Is the New York Long Term Care Trust Act in effect?
Possible Deadline to Purchase Long Term Care Insurance in New York State
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The big question in everyone’s mind is:
When will the New York Long Term Care Insurance Trust Act become effective?
The bill was written on May 9, 2022 and is currently in the New York Senate Health Committee. The last line of the bill states, “This act shall take effect immediately.” As soon as the bill is passed by the New York Senate and Assembly and signed by the Governor it will become effective on that date.
What does this mean?
If this bill becomes law at any time in the year 2024, then only those people who own a long-term care insurance policy with an effective date no later than January 1, 2024 will be able to qualify for an exemption from the payroll deduction. If you are interested in opting out of the New York Long Term Care Trust Act, then you will need to plan ahead and take action long before the bill becomes law.
If you want to avoid the payroll deduction to fund this New York state program, then you need to purchase a long-term care insurance policy before the bill becomes effective.
We do NOT know when the New York Long Term Care Insurance Trust Act will be in effect.
We do know how the bill reads today, and we are following it closely. With the experience we gleaned from the Washington Long-Term Care Trust Program, we believe that this bill will become law soon. States are looking for ways to offset their Medicaid budgets with state-sponsored programs, so this bill is likely to become law.
As the bill reads today, you must own a long-term care insurance policy well BEFORE it becomes law to have the option to opt-out of the program.