California LTC Task Force Update

​On October 6th, the CA LTC Task Force met.

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Commentary

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The LTC Taskforce met on 10/6 to where a draft feasibility report with 5 proposed plans was introduced.  There will be another meeting to be scheduled in November to further discuss as well as a mid- December meeting to present final draft that is due to governor by end of year.

There was a lot of discussion around these plans which as proposed include both an ER and EE tax.  Industry representatives who are commenting in this forum, are proposing that any private LTC policy with a benefit eligibility trigger of 2 of 6 activities of daily living (ADLs) or a cognitive impairment be considered eligible for the purposes of program contribution exemption.  

 Attaching a link to last meeting minutes if you are interested.

https://www.insurance.ca.gov/0500-about-us/03-appointments/Meeting16.cfm

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Key note:  Private Long-Term Care insurance policies need to have an effective date PRIOR to legislation being signed into law.  Long-term care insurance most likely include life insurance policies with Tax-Qualified Long-Term Care Riders (IRC 7702b).  Making plans for employer-based offering is highly advisable in 2023 before law takes affect.

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Key dates below:

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November 18, 2022       LTC Task Force meeting to discuss feasibility report

December 15, 2022       LTC Task Force meeting to discuss FINAL feasibility report and recommendations

January 1, 2023              Due date for LTC Task Force recommendations on plan design

January 2022                  Legislature returns

January 1, 2024              Due date for actuarial study on the program