The State of New York is seriously investigating if it should establish a “New York Long-Term Care TRUST Act” in order to provide limited LTC services to residents of New York State.
Washington State was a pioneer by passing legislation in 2021, offering limited LTC to their residents funded by a payroll tax. New York is looking to go down a similar path with a potential payroll deduction collected by employers. However, the “premium contribution” amount has not yet been decided (Washington collected a 0.58% payroll tax).
One of the salient points of this proposed legislation (linked below) is that there will be NO “Fire Sale” like Washington State had happen.
The current legislation being proposed states that New York will revert to January 1st of the year the legislation is passed, and someone would need to have had a qualifying LTC policy inforce at that point (i.e. if the legislation is passed on June 1st, 2023). Residents of New York with a qualifying LTC policy purchased no later the January 1st, 2023 would be exempt from the proposed payroll tax.
Seize the Opportunity!
Be proactive and contact all of your clients residing in New York and make them aware of the potential for this “New York LTC TRUST Act” coming to fruition next year, and strongly encourage them to purchase an appropriate LTC policy before the end of this year! Reach out to Madison Brokerage today for custom illustrations to share with your valued clients.