Important Updates regarding the drafted Long-Term Care Trust Act Legislation in NY & PA
Did you know? New York & Pennsylvania are drafting legislation that will create a publicly funded long-term care benefit for workers, providing a basic level of long-term care protection.
The proposed legislation is still being drafted and have not yet been finalized. Chemours employees can return to this page for updates on the New York & Pennsylvania Long-Term Care Trust Acts as details develop.
Both Long-Term Care Trust Acts requires individuals to have a long-term care insurance policy in place in one of two ways:
- Automatic enrollment through the State
- Private insurance purchased prior to the legislation being passed
Most Likely Elements of the Long-Term Care Trust Acts*
- What is the cost of coverage?
- Payroll tax on state workers – tax percentage is to-be-determined (TBD)
- TBD on whether there will be a cap on income subject to the tax
- When are benefits available?
- Likely Benefit Trigger: After the loss of Activities of Daily Living (ADLs), which are activities related to personal care and may include bathing, dressing, walking, eating, etc.
- Likely Vesting Requirement: To qualify for benefits, you must be vested by working and contributing to the fund for a specified number of years (number to be determined).
- What benefit will be paid to help off-set the cost of long-term care services?
- Benefits paid based on a reimbursement of eligible expenses related to home care, assisted living or nursing home care
- Likely lifetime benefit cap of $36,500
What are the steps for opting-out of the tax?
A worker in the respective state who demonstrates that they have held private long-term care insurance on an uninterrupted basis prior to the Trust's effective date may be eligible to opt out of the payroll tax.
As proposed, private coverage may be subject to an initial review process as well as possible ongoing audits. It has yet to be confirmed whether Living Benefits plus Life Insurance will qualify as approved private Long-Term Care coverage by each state. The Living Benefits with Life Insurance product offered through Chemours is not qualified under legislation passed in Washington State in 2019.
Is private coverage right for me?
Based on your age and salary, you may be able to secure MORE private coverage for less than your individual tax burden. Private coverage also provides a contract as opposed to a promise as provided by a publicly funded benefit.
Other notable differences between the proposed state programs and Living Benefits plus Life Insurance are outlined below:
Living Benefits + Life
Life Insurance Benefit
May not be portable across state lines
Benefit Waiting Period
Subject to vesting schedule
90-day elimination period
Reimbursement-based, meaning benefits may differ according to eligible expenses incurred
Indemnity-based, meaning the monthly benefit will consistently be 4% of the life insurance face amount, regardless of expenses incurred.
Learn more about why private insurance may be the best choice for protecting you and your family by viewing a recorded webinar session HERE.