A bill introduced in the Connecticut General Assembly that would create a $500 personal income tax credit for premiums paid on Long Term Care Insurance has lost momentum.
Killed in Committee
On Monday, the Finance Revenue and Bonding Committee decided not to vote on the bill. Their decision gives the bill an uncertain fate during the current legislative session.
Objections raised by opponents of the bill claim it is too costly to the state. The tax credit will cost an estimated $71.5 million in 2014, $78.3 million in 2015, and $84.6 million annually from 2016 on, according to the Office of Fiscal Analysis.
Worth the Cost?
Supporters of the bill argue the bill is a step in the right direction during a time when few are prepared to pay for Long Term Care services down the road. Although 7 in 10 Americans over the age of 65 will need Long Term Care at some point, recent studies have found that only 1 in 10 seniors has Long Term Care Insurance.
The bill was intended to encourage Connecticut residents to invest in Long Term Care Insurance, thereby protecting their financial assets and ensuring they will not need to make use of Medicaid, the government subsidized Long Term Care program that was intended for those with little to no income.
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