Over the coming months, you may begin hearing more information concerning the proposed payroll deduction to help fund state-run long-term care insurance for New York workers.
The bill's purpose is to create a new way of financing the support that residents need if they are unable to take care of themselves due to illness, injury, or cognitive impairment. Overall, it’s meant to help with the toll that long-term care has on state Medicaid programs.
What is the Long-Term Care Trust Program?
Established by the proposal outlined in Senate Bill 9082, the Long-Term Care Trust Program would provide New York workers with state-run benefits for long-term care and support. This support would be funded through a payroll tax deduction for all New York workers.
If Senate Bill 9082 is signed into law, it will provide long-term care for eligible New York State residents who need assistance in at least three Activities of Daily Living (ADLs). These activities include:
- Medication management
- Personal hygiene
- Eating
- Toileting
- Transfer assistance
- Body care
- Bathing
- Dressing
The program would help a New York worker pay for assistance in performing these daily activities.
So far, only Washington State has an insurance program of this nature. Still, Alaska, California, Colorado, Hawaii, Oregon, Illinois, Michigan, Minnesota, North Carolina, Utah, and New York are following close behind to address the needs of those who require funding for long-term care solutions.
What are the Costs?
The percentage of the payroll tax has yet to be determined, but the benefits eligible workers can get are likely to be similar to Washington’s plan. That plan provides $100 a day for at least a year for a total benefit of $36,500.
New York will also likely not have a residency requirement attached to the plan. This means laborers who work in New York but live in other states will still be taxed. New York’s program will likely also tout benefits with a degree of portability. Benefits will be provided for qualified New York workers no matter what state they live in.
The program is also expected to offer an “opt-out” option. This means that an employee showing proof of privately purchased long-term care insurance can opt out of the payroll deduction.
What Do I Need to Know Right Now?
As this bill is still in committee with the legislature, no steps need to be taken at the moment. However, should the bill become a law, make sure you are kept informed about the dates it will go into effect and important deadlines such as the opt-out deadline.
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