Important Updates regarding states considering a long-term care income tax
Did you know? Many states, including Pennsylvania, are considering and/or developing a law that will create a publicly funded long-term care benefit for residents in those states, providing a basic level of long-term care protection for workers.
The below figure shows which states are in legislative process as of August, 2024. Main Line Health employees can return to this page for updates on the state proposed legislation as details develop.
What are the options for opting-out of a state proposed legislation?
A state worker will likely need to demonstrate that they have held private long-term care insurance on an uninterrupted basis prior to legislation becoming effective to be eligible to opt out of the payroll tax.
Private coverage may be subject to an initial review process as well as ongoing audits. It has yet to be confirmed whether Long-Term Care + Life Insurance will qualify as approved private Long-Term Care coverage by each state, but it is likely to qualify for most states.