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Bill

HF 355

Maximum long-term care insurance credit increased.

2025-2026 Regular Session Introduced by Greg Davids and 3 co-sponsors

Minnesota bill increases tax credits for long-term care insurance purchases to incentivize advance planning and reduce future state Medicaid costs.

Author added Elkins
#taxation-income
0
WeVote Research Nonpartisan
Bill Summary · HF 355

Legislative bill overview

HF 355 increases the maximum tax credit available to Minnesota taxpayers who purchase long-term care insurance policies. The bill modifies existing state tax law to provide larger financial incentives for individuals buying these insurance products. This adjustment affects the state's tax code governing long-term care insurance credits.

Why is this important

Long-term care—nursing homes, assisted living, and in-home care—represents a significant financial burden for aging populations and their families. Tax credits make these insurance policies more affordable, potentially encouraging people to plan ahead for care costs rather than depleting savings or relying on state Medicaid programs. Increased credits could reduce future state expenditures on long-term care assistance.

Potential points of contention

  • Revenue impact: Larger tax credits reduce state income tax revenue; lawmakers may debate whether this fiscal cost is justified or if funds should be allocated elsewhere
  • Equity concerns: Tax credits primarily benefit middle to upper-income earners who can afford insurance premiums; lower-income populations may gain limited benefit
  • Insurance market effects: Increasing incentives could inflate demand, potentially affecting insurance product pricing or availability in the state market

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

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