Posted by On December 2023, 12, California’s long-term care bill (Assembly Bill 18), which had previously attracted attention,
The task force finally produced a 100-page actuarial report. Since then, 4 years after the bill was introduced,
Legislators will help decide through a feasibility study report in 2022 and an actuarial report in 2023.
Will it be followed by Washington State (Related Columns) established the second public long-term care program in the United States.
Proposal to deduct taxes directly from wages
According to a feasibility study report released before 2024, the task force proposed a progressive payroll tax paid jointly by employers and employees to pay for five qualifying care projects.
這5個項目根據需要護理的程度不同，支付額度從$36000到$144000不等。大多數的項目從18歲開始計算行許可權制期（vesting period），通常為5年或10年。符合理賠的條件和商業長期護理及HIPPA條規一致，普遍會比Medi-Cal的理賠條件嚴格。
Are California long-term care taxes exempt?
In 2024, what California residents care about most is also what Washington State will encounter the most resistance and create unnecessary chaos (Related reports), that is, how to provide the public with an insured businessLong-term careCome opt-out from the government-mandated long-term care “tax.”
The opt-out mechanism currently proposed by the group would be effective before the long-term care bill's effective date (which has yet to be determined)
Commercial nursing insurance will be exempted, and commercial nursing insurance purchased after the effective date of the bill will be exempted.
Not exempt, but eligible to apply for reduced contributions to public nursing programs.
Since its release on December 12, the actuarial report has provided lawmakers with an actuarial estimate to introduce the bill.
and the feasibility of the project. As of the time of this article, this new public long-term care program
There are still many uncertainties, including how to design project details, administrative procedures and different public projects.
There are no details yet on the coordination between projects. So the project team is continuing to work on the steps to introduce the bill
consultation. Therefore, we speculate that this bill is unlikely to be passed in 2024, but we will continue to pay attention to
Notes and timely updates are given.
Will business employers continue to wait and see?
Here I would like to give some suggestions to corporate employers. As of now, there is no legal requirement for employers to provide employees with
Provide long-term care insurance, considering that choosing opt-out is a personal action and not the responsibility of the employer, plus this
There is currently no exact timeline and clear guidance on what kind of plan can comply with the exit mechanism.
The requirements are still unclear, and I suggest that employers should pay attention to further updates to the bill before making a decision. (Full text ends)
(>>>Related reading:Official rumor!California Long-Term Care Public Insurance Plan Deadline and Payroll Tax Shelter Update）
(>>>Related topics:Latest Long Term Care Insurance News Features & Special topics on pension & long-term care insurance）
(>>>Related reading:Washington State promotes universal long-term care insurance (LTC), is it a benefit or a disguised tax increase on the middle class?)
