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H 3025

An Act relative to long-term care insurance tax credit

194th Legislature (2025-2026) Introduced by Michelle Badger

Massachusetts would offer state tax credits to residents purchasing long-term care insurance to reduce out-of-pocket costs and shift aging care financing toward private coverage.

Hearing rescheduled to 09/16/2025 from 10:30 AM-12:30 PM in A-1 and Virtual Hearing updated to New End Time
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Bill Summary · H 3025

Legislative bill overview

H 3025 proposes to establish a state tax credit for Massachusetts residents who purchase long-term care insurance policies. The bill aims to incentivize private long-term care insurance adoption by making such coverage more financially accessible through the tax code. This addresses the potential gap between the cost of long-term care services and public coverage options like MassHealth.

Why is this important

Long-term care costs can exceed $100,000 annually and pose catastrophic financial risks to individuals and families. By incentivizing private insurance through tax credits, the state could reduce future reliance on state-funded programs while helping residents plan for aging-related expenses. This represents a policy choice about how to distribute responsibility for long-term care financing between individuals, the private insurance market, and government programs.

Potential points of contention

  • Cost to state budget: Tax credits represent foregone revenue; the fiscal impact depends on credit size and participation rates, which the bill summary doesn't clarify
  • Equity concerns: Tax credits may disproportionately benefit higher-income residents who can afford premiums and benefit from tax reductions, potentially widening disparities in access to coverage
  • Insurance market viability: Long-term care insurance markets have faced challenges nationally with rising premiums and insurer exits; subsidizing demand doesn't address underlying market stability issues

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

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