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HB 5030

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR LONG-TERM CARE INSURANCE PREMIUM PAYMENTS.

2025 Regular Session Introduced by Tami Zawistowski

Connecticut bill allows residents to deduct long-term care insurance premiums from state income taxes to incentivize private coverage and reduce future Medicaid burden.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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WeVote Research Nonpartisan
Bill Summary · HB 5030

Legislative bill overview

HB 5030 would allow Connecticut residents to deduct long-term care insurance premium payments from their state personal income tax. This deduction would reduce taxable income for individuals who purchase qualified long-term care insurance policies, effectively lowering their state tax liability.

Why is this important

Long-term care (nursing homes, assisted living, in-home care) is increasingly expensive and often depletes retirement savings. This tax incentive aims to encourage more people to purchase insurance that covers these costs, potentially reducing future reliance on public Medicaid programs to pay for long-term care services. Currently, federal law allows such deductions, but not all states do.

Potential points of contention

  • Cost to state budget: The deduction will reduce state tax revenue; fiscal impact depends on adoption rates and average premium amounts claimed
  • Equity concerns: Tax deductions primarily benefit higher-income earners who can afford insurance premiums and have tax liability to reduce; lower-income residents may gain little benefit
  • Insurance market structure: May primarily benefit insurance companies through increased sales rather than directly helping those with limited means afford care
  • Means testing unclear: No indication whether deduction applies to all income levels or has income caps, affecting progressivity

Compiled from official sources — confirm details with the bill’s official record.

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