The State of Washington will soon be imposing a tax on those who do not have a qualified Long-Term Care Insurance policy in force. Gov. Inslee signed it into law on January 27, 2022, delaying the program's implementation until July 1, 2023.

Those without insurance will have access to a limited amount of long-term care benefits through the Washington Trust. Washington residents had a short time to have a qualified Long-Term Care Insurance policy in place to avoid the payroll tax of 0.58 percent on all earned income.

Now several states, including California and New York, are close to implementing their programs, which will impose the tax on earned income unless a resident owns a qualified Long-Term Care Insurance policy.

Learn more - Multiple States Considering Implementing Long-Term Care Tax | LTC News.

Prepare for Future Long-Term Health Care and Avoid Paying the Tax

Matt McCann, a leading national expert on Long-Term Care Insurance and planning, says being proactive will help you prepare for the costs and burdens of aging and help you avoid the tax.

"Long-Term Care Insurance provides policyholders guaranteed tax-free benefits that give them access to their choice of quality care services, including in-home care. LTC Insurance safeguards income and assets, including savings from qualified retirement accounts like 401(k)s, IRAs, and other savings. The states implementing the LTC tax add a new deimension for planning."

Matt McCann

Since the tax would be on earned income, some people could pay this tax for decades and decades. Younger people, McCann says, will have an ever-increasing tax as they make more money throughout their working life. 

California and New York Close to Implementing LTC Tax Program

McCann points out that residents may have little or no time to obtain coverage. He recommends that those living in the states listed in the referenced article, especially California and New York, should seek coverage soon. 

Most people who purchase Long-Term Care Insurance do so in their 50s as part of their retirement planning. Traditional health insurance, including Medicare, pay little or nothing toward long-term health care services. 

"Families often discover too late that health insurance and Medicare are not options for long-term care. Medicaid will pay for long-term care services only if the care recipient has little or no income or assets. Unless someone has Long-Term Care Insurance, they are left to self-fund the necessary care, or family members, often adult children, become caregivers. Neither option is ideal."

Matt McCann

McCann says while the state programs include some long-term care coverage provided by the state, it is minimal and hardly covers the current or future costs.

"Long-term health care services are in great demand. The cost of long-term care services is exploding nationwide. As we age, we need help with daily living activities or supervision due to memory loss. The financial costs and burdens of aging impact our families and finances. LTC Insurance is a solution to address the cost and quality of care and to avoid the tax," McCann added.

Consumers Should Work with LTC Insurance Specialist

McCann works with consumers nationwide to plan for the costs and burdens of changing health and aging. He also works with financial planners and insurance agents, helping them assist their clients. He represents the top companies that offer long-term care solutions.

He says working with Long-Term Care Insurance specialists like himself is essential in finding the best coverage at the best value. LTC Insurance is medically underwritten, and premiums are based partly on your age, health, family history, and other factors.

McCann's website has many resources to help consumers and their financial advisors. Now with states considering the LTC tax, getting coverage is even more urgent. You can get free and accurate quotes from the top companies along with professional recommendations - www.mccannltc.net/quote