Maryland 2024 Regular Session

Maryland House Bill HB218

Introduced
1/10/24  

Caption

Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2024)

Impact

If enacted, this bill could significantly benefit eligible seniors by encouraging them to purchase long-term care insurance. Coverage is critical as it can provide essential services that assist older individuals in living independently while reducing the strain on state-funded medical assistance programs. The bill represents a proactive approach to managing future healthcare costs related to aging populations, potentially lowering state expenditures in long-term healthcare support.

Summary

House Bill 218, also known as the Long-Term Care Relief Act of 2024, proposes an income tax credit specifically designed to alleviate the financial burden of long-term care insurance premiums for Maryland residents. The bill aims to assist seniors, particularly those aged 85 and older, who report Maryland adjusted gross incomes below certain thresholds—$100,000 for individual filers and $200,000 for joint filers. The proposed credit would allow qualifying taxpayers to claim 15% of their paid long-term care premiums, up to a maximum of $1,500 per insured individual, which includes coverage for spouses and children.

Conclusion

Ultimately, the legislative discourse surrounding HB218 will likely center around its dual objectives of promoting long-term care insurance and managing the state's fiscal responsibilities while ensuring that senior citizens have the necessary support for their healthcare needs.

Contention

However, the bill's economic implications may spark debate. Supporters argue that the income tax credit incentivizes insurance purchases while allowing seniors to maintain their independence. Critics may argue that while providing tax credits helps, these measures could also lead to increased costs in the insurance market, prompting discussions around affordability and accessibility of long-term care for all citizens, not just those who qualify for tax credits. Moreover, concerns could arise regarding the long-term sustainability of such credits within the state's budget.

Companion Bills

MD SB86

Crossfiled Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2024)

Previously Filed As

MD HB160

Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2023)

MD SB137

Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2023)

MD HB1185

Income Tax - Credit for Long-Term Care Premiums

MD HB28

Income Tax – Credit for Caregivers of Senior Family Members

MD SB344

Income Tax - Caregiver Tax Credit

MD HB680

Income Tax - Student Loan Debt Relief Tax Credit - Alterations

MD SB243

Income Tax - Child and Dependent Care Tax Credit - Alterations

MD HB1294

Property Tax Credit for Long-Term Residents - Established

MD HB765

Property and Income Taxes - Credits for Construction and Purchase of Housing in Western Maryland

MD SB207

Income Tax - Octogenarian Credit

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