California LTC Task Force Update Feb 2023

 

California LTC Task Force Update Take-aways In 2023, Oliver Wyman, a Marsh McClennan Company, will be:

 

a. Assessing the financial impact of changing the deadline for the purchase of opt-out eligible private insurance policies from the Program effective date to the beginning of the year preceding the Program effective date.

 

Ownership Date-With a proposed 1/1/25 effective date of the Program, and based on the assessment from above, a conservative approach to own a private LTC solution by 1/1/24.

 

b.    Benefit eligibility age. Assess the financial impact of a range (e.g., no minimum age, 18+,
30+, 40+, 50+, 65+).

 

c.    Portability and divesting criteria. Assess the financial impact of including full or partial international portability for all Program designs.

 

d.    Revenue source(s). Assess the financial impact of a range for the employer-paid portion of the Program contribution rate (e.g., 0% employer paid or fully employee paid, 25% employer paid, 50%employer paid).

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For scenarios that include an employer paid portion of the Program contribution rate, assess the financial impact of exempting small businesses (e.g., business with fewer than 50 employees).

 

e. Contribution limits. Assess the financial impact of a range of contribution caps (e.g., various multiples of the Social Security contribution limit), including the impact of not having a contribution cap.

 

Payroll Tax Estimate Plan 3 is the was the only plan given a payroll deduction percentage.  Oliver Wyman calculated a range between 0.40% to 0.60%. Plan 4 was received the most votes by Task Force members and benefit with higher monthly benefits and a longer benefit duration period.  A higher payroll tax would be required to support more comprehensive benefits.  See Strawman plan design table. Private LTC Insurance Minimum Plan Design Standards Unlike the State of Washington, California LTC Task Force will require a minimum policy design standard.  We can only assume that the standard would be for citizens to match or exceed the State Program plan design.