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SB 71

AN ACT ESTABLISHING A TAX CREDIT FOR PREMIUM PAYMENTS FOR CERTAIN LONG-TERM CARE INSURANCE POLICIES.

2026 Regular Session Introduced by Gale Mastrofrancesco and 1 co-sponsor

Connecticut would create an income tax credit for residents paying long-term care insurance premiums to reduce state Medicaid costs and encourage private coverage.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · SB 71

Legislative bill overview

SB 71 creates a tax credit in Connecticut for individuals who pay premiums on qualifying long-term care insurance policies. The credit would reduce state income tax liability for policyholders, effectively subsidizing private long-term care insurance purchases through foregone tax revenue.

Why is this important

Long-term care is a significant financial burden for aging populations and their families, with costs often exceeding $100,000 annually. By incentivizing private insurance purchases through tax credits, Connecticut aims to reduce potential future reliance on state-funded Medicaid for long-term care services, shifting costs to individual policyholders and private insurers.

Potential points of contention

  • Equity concerns: Tax credits primarily benefit higher-income earners who can afford insurance premiums and have tax liability to offset; lower-income residents may gain little benefit
  • Fiscal impact: The state will lose tax revenue without clear projections of how many residents would qualify or the total cost to the state budget
  • Insurance market issues: The credit's effectiveness depends on whether it meaningfully increases insurance uptake and whether insurers continue offering policies in Connecticut's market
  • Eligibility definition: The bill's reference to "certain" policies suggests restrictions that aren't fully detailed in this summary, raising questions about which products qualify and why

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

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