California LTC Task Force Update
On October 6th, the CA LTC Task Force met.
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.
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.
Key dates below:
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