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Bill

H 120

An act relating to the study and design of a long-term care trust fund

2025-2026 Regular Session Introduced by Dan Noyes and 1 co-sponsor

Vermont would study and design a social-insurance long-term care fund funded by residents above 150% of poverty, with benefits, portability, and possible Medicaid transfer.

Read first time and referred to the Committee on Human Services
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WeVote Research Nonpartisan
Bill Summary · H 120

Overview

  • Bill: H.120 (2025-2026 Session) – Vermont
  • Title: An act relating to the study and design of a long-term care trust fund
  • Sponsor(s): Rep. Daniel Noyes (primary), Rep. David Yacovone (co-sponsor)
  • Committee: House Committee on Human Services
  • Purpose: Require the Secretary of Administration to study and design a long-term care trust fund for Vermont residents and to propose legislation to statutorily create the fund.

Main purpose and intent

  • Establish a framework to study how a long-term care fund could be designed and funded, modeled on a social-insurance approach (e.g., similar to Social Security).
  • Identify how such a fund could provide long-term care services for eligible Vermonters and how benefits would be delivered.

Key provisions and changes

  • Study and design mandate (Sec. 1(a)):
    • Explore creation and design of a long-term care trust fund based on a social insurance model.
    • Develop a funding plan, including:
    • Starting fund collection on July 1, 2026, for a minimum of three years before benefits begin.
    • Collecting funds from Vermont residents with Vermont taxable income above 150% of the federal poverty level.
    • Create a governing committee with a proposed composition to:
    • Administer the fund.
    • Develop the benefit package and eligibility thresholds (based on activities of daily living and cognitive challenges).
    • Develop regulations on portability of benefits for people who pay into the system but leave Vermont.
    • Assess eligibility viability: whether individuals could qualify for benefits after paying into the program for at least two years.
    • Consider transfer of fund resources to Medicaid for long-term care services.
  • Collaboration and support (Sec. 1(b)):
    • The Secretary of Administration may seek assistance from other state agencies, departments, boards, commissions, or independent entities in the Executive Branch.
  • Reporting and timeline (Sec. 1(c)):
    • By January 15, 2026, the Secretary must submit a written report detailing findings to specified House and Senate committees (Appropriations, Human Services, Ways and Means; Appropriations, Finance, Health and Welfare).
    • The report must include any proposed legislation necessary to implement the fund.
  • Effective date (Sec. 2):
    • The act takes effect July 1, 2025.

Who would be affected

  • Vermont residents with Vermont taxable income above 150% of the federal poverty level (as potential contributors).
  • The Secretary of Administration, who would lead the study and design process.
  • A designated governing committee responsible for administering the fund and shaping benefits.
  • State agencies and offices that may provide assistance or implement related regulations (Executive Branch departments, boards, commissions, and independent bodies).

Procedural and timeline aspects

  • Study and design phase begins after enactment (effective date July 1, 2025).
  • Funding contributions contemplated to begin July 1, 2026, with at least three years of funding before granting benefits.
  • Initial report due by January 15, 2026, to specified legislative committees, outlining:
    • Fund design, governance, eligibility, portability, and transition considerations.
    • Proposed legislation to create/statutorily establish the fund.
  • Possible transfer of fund resources to Medicaid to support long-term care services, contingent on the design and legislative decisions.

Potential impact considerations (high-level)

  • Creates a pathway toward a state long-term care funding mechanism, reducing reliance on existing programs alone and potentially expanding access to paid long-term care.
  • Introduces income-based contributions (threshold of 150% of federal poverty level) to fund the program.
  • Establishes portability and eligibility frameworks, which would influence who benefits and how benefits move if a participant relocates.
  • Could influence Medicaid spending and long-term care policy in Vermont through resource transfers.

Note: This summary reflects the introduced bill text and stated intent. The actual program design, funding levels, eligibility criteria, and legislative outcomes would depend on future amendments and enacted statutes.

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

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