An Act Establishing A Credit Against The Personal Income Tax For Long-term Care Insurance Premium Payments.
Impact
If enacted, HB 05910 would amend Chapter 229 of the general statutes, making it more financially feasible for residents to purchase long-term care insurance. This would likely promote increased coverage among individuals, particularly the elderly or those planning for retirement. Additionally, as more people turn to private insurance, the state could see a decrease in reliance on public assistance programs, which often bear the costs when individuals exhaust their personal resources for care.
Summary
House Bill 05910 aims to establish a tax credit against the personal income tax for premiums paid for long-term care insurance. This legislation is intended to alleviate some of the financial burden associated with long-term care, enabling individuals to better afford necessary insurance coverage. Such a tax credit could encourage more people to invest in long-term care policies, potentially reducing future state Medicaid costs associated with providing care to individuals who have not prepared for their long-term care needs.
Contention
One notable point of contention surrounding the bill may revolve around its fiscal implications. While proponents argue that the credit would save the state money in the long term by encouraging private insurance, opponents might question the immediate impact on state tax revenues. There may also be discussions about the fairness of providing tax breaks to those who can afford long-term care insurance compared to vulnerable populations who may not have adequate resources to access such coverage. Additionally, concerns about the effectiveness of the credit in actually increasing enrollment in long-term care insurance plans could be raised during debates.