Bill
S 4698
Bill S 4698 removes caps and income limits on long-term care insurance credits, making coverage more accessible and affordable for more individuals.
Title: Eliminates the cap on the maximum amount and the gross income requirement for the long-term care insurance credit
Bill Number: S 4698
Status: Referred to Budget and Revenue
Introduced: February 11, 2025
Classification: Bill
Bill S 4698 aims to enhance access to long-term care insurance by removing existing financial barriers. Specifically, it seeks to eliminate the cap on the maximum amount that can be claimed as a credit for long-term care insurance premiums and to remove the gross income requirement that currently limits eligibility for this credit. The intent is to encourage more individuals to invest in long-term care insurance, thereby promoting financial security and reducing the burden on public assistance programs.
Removal of Maximum Cap: The bill proposes to eliminate any cap on the maximum amount that can be claimed as a credit for long-term care insurance premiums. This change allows policyholders to receive a credit that reflects the full amount of their premium payments, potentially leading to significant tax savings.
Elimination of Gross Income Requirement: Currently, eligibility for the long-term care insurance credit is restricted by a gross income threshold. This bill would remove that requirement, allowing more individuals, regardless of their income level, to qualify for the credit.
Policyholders: Individuals who purchase long-term care insurance would benefit directly from the increased tax credit, making it more financially feasible to maintain such coverage.
Insurance Companies: Providers of long-term care insurance may see an increase in policy sales as more individuals become eligible for the credit.
Taxpayers: The broader taxpayer base may experience indirect effects, as increased uptake of long-term care insurance could reduce reliance on state-funded long-term care services.
Introduced Date: The bill was introduced on February 11, 2025, and has been referred to the Budget and Revenue committee for further consideration.
Related Legislation: This bill is related to prior-session bills S 6442 and S 3401, as well as companion bill A 6883, indicating ongoing legislative interest in reforming long-term care insurance credits.
Bill S 4698 represents a significant step towards making long-term care insurance more accessible and affordable for a broader segment of the population. By eliminating financial caps and income restrictions, the bill aims to promote greater participation in long-term care insurance, ultimately benefiting individuals and the healthcare system as a whole. Further discussions and evaluations will take place as the bill moves through the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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