New York Long Term Care Trust Act
Otherwise known as, Senate Bill S9082, will establish the New York Long Term Care Trust Program to provide long-term care benefits for eligible residents. New York residents who have paid the required payroll tax withholdings and are in need of assistance with at least three activities of daily living (ADLs) as determined by the department of health will be eligible for the program benefit of $36,500.
Washington State was the first in the nation to establish a Long-Term Care Trust to help offset the high cost of long-term care services in their state. Senate Bill S9082 is New York State’s version of the same program only better. The New York Long Term Care Trust Act eliminates the problems that were in the WA LTC Trust Act initially, correcting the mistakes before signing the bill into law. One very important difference is the requirement for allowing people to be exempt from the program and not pay the payroll tax deduction.
According to the bill, in order to be exempt from the New York Long Term Care Trust Act, you must own long-term care insurance before January 1st of the year in which the law becomes effective. For example, if the law becomes effective anytime in 2023, you must own long-term care insurance before January 1, 2023.
The bill summary explains the New York Long Term Care Trust Act this way:
“Provides for an optional exemption from the obligation to pay premiums (which exemption is coupled with a disqualification of the right to receive benefits) for individuals who have had in place private long-term care insurance continuously for at least the duration of the calendar year to date prior to the effectiveness of the law, for as long as they maintain those policies.”