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SB 155

Income Tax - Credit for Long-Term Care Premiums (Long-Term Care Relief Act of 2025)

2025 Regular Session Introduced by Jack Bailey and 1 co-sponsor

Maryland would offer state income tax credits to residents who purchase qualified long-term care insurance, shifting some long-term care cost burden from public Medicaid programs to private insurance and taxes.

Hearing 1/15 at 10:30 a.m.
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WeVote Research Nonpartisan
Bill Summary · SB 155

Legislative bill overview

SB 155 would establish a state income tax credit for Maryland residents who pay premiums for qualified long-term care insurance policies. The credit would reduce state income tax liability for eligible taxpayers, effectively subsidizing private long-term care insurance costs through foregone tax revenue.

Why is this important

Long-term care is a significant financial burden for aging populations and their families, with nursing home and home care costs often exceeding $100,000 annually. By incentivizing private long-term care insurance through tax credits, the state aims to reduce reliance on Medicaid for long-term care funding while helping residents plan for potential care needs in advance.

Potential points of contention

  • Cost to state budget: The bill's fiscal impact depends on participation rates and credit amounts; high uptake could substantially reduce state tax revenue without offsetting Medicaid savings if credits benefit middle-income residents already unlikely to qualify for Medicaid
  • Equity concerns: Tax credits primarily benefit higher-income taxpayers who can afford premiums and have tax liability; lower-income residents may not benefit despite having greater long-term care vulnerability
  • Insurance market dynamics: Subsidizing premiums may inflate long-term care insurance pricing, reducing the policy's effectiveness if insurers raise rates in response to increased demand

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

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