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Bill

A 4093

Provides a personal income tax deduction for long term care insurnace riders

2025 Regular Session Introduced by Steve Stern

Bill A 4093 allows individuals to deduct long-term care insurance rider premiums from their income taxes, making coverage more affordable and encouraging financial preparedness.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 4093

Summary of Bill A 4093

Overview

Bill Number: A 4093
Title: Provides a personal income tax deduction for long-term care insurance riders
Status: Referred to Ways and Means
Introduced: January 31, 2025
Classification: Bill

Purpose and Intent

Bill A 4093 aims to provide financial relief to individuals who purchase long-term care insurance by allowing them to deduct certain expenses related to insurance riders from their personal income taxes. This initiative is intended to encourage more residents to invest in long-term care insurance, thereby promoting financial preparedness for future healthcare needs.

Key Provisions

  • Personal Income Tax Deduction: The bill proposes a specific deduction for premiums paid on long-term care insurance riders. This would allow policyholders to reduce their taxable income by the amount spent on these riders.
  • Definition of Long-Term Care Insurance Riders: The bill clarifies what constitutes a long-term care insurance rider, ensuring that only qualifying expenses are eligible for the deduction.
  • Eligibility Criteria: The bill outlines the criteria that must be met for individuals to qualify for the deduction, including the type of insurance policy and the nature of the riders.

Impact

  • Affected Parties: The primary beneficiaries of this bill would be individuals who purchase long-term care insurance, particularly those who opt for additional riders that enhance their coverage. This could include seniors and individuals planning for future healthcare needs.
  • Financial Implications: By allowing a tax deduction, the bill aims to make long-term care insurance more affordable, potentially increasing the number of policyholders and reducing the financial burden on families facing long-term care costs.

Procedural Aspects

  • Legislative Process: As of January 31, 2025, the bill has been referred to the Ways and Means Committee for further consideration. This step is crucial for evaluating the bill's fiscal implications and potential impact on state revenue.
  • Related Legislation: Bill A 4093 is linked to prior-session bills A 8456, A 2408, and A 2101, which may provide context or precedent for the current proposal.

Conclusion

Bill A 4093 represents an effort to enhance the accessibility and affordability of long-term care insurance through tax incentives. By providing a personal income tax deduction for insurance riders, the bill seeks to encourage more individuals to prepare for future healthcare needs, ultimately benefiting both policyholders and the broader healthcare system. Further discussions and evaluations in the Ways and Means Committee will determine the bill's future trajectory.

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

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