CA Tax Initiative

The Bill is Introduced

The Long Term Care Insurance Task Force (Task Force) was established within the California Department of Insurance in 2019 with the passage of AB 567. Its mission is to explore the feasibility of developing and implementing a statewide insurance program for long-term care services and support. At this time, it appears the Task Force is considering recommending several designs that would include “opt-outs” for individuals who own private coverage. Specific requirements regarding qualifying coverage for the opt out is yet to be determined.

Currently...

On October 6, 2022, the Task Force held public meetings to discuss a draft feasibility report. The feasibility report contains five potential program designs and also notes Task Force members' preferred designs.

Next Steps

The Task Force has decided to add an additional meeting in November to discuss revisions to the feasibility report. The draft feasibility report also outlined recommended next steps as part of the forthcoming actuarial study (due to the Legislature on January 1, 2024). In the November meeting, they will discuss establishing an actuarial subcommittee to support the actuarial study on the program designs.

Future LTC Tax

Final recommendations are expected at the Task Force meeting on December 15, 2022. Given the complexity and cost to fund a state run LTC program, we would expect the legislative process to take 1-2 more years before a program is in place.