What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Print number 2315a
- Amend (t) and recommit to investigations and government operations
- Referred to investigations and government operations
- Recommitted to rules
- Ordered to third reading cal.1481
- Committee discharged and committed to rules
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Establishes tax credits for premiums paid for life insurance which is used for long term health care
In Assembly Committee · Insurance · Sponsor Mark Gjonaj
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law and the insurance law, in relation to credits for premiums paid for long-term care insurance policies
Purpose or general idea of bill
The purpose of this bill is to expand upon the provisions of Chapter 563 of the Laws of 2010 and Chapter 465 of the Laws of 2014, which expanded the types of end of life care that can be financed by an accelerated death benefit rider attached to a life insurance policy. Under these new laws, persons who have resided in a nursing home for three months or more or require end of life or palliative care for three months or more at a residential, health care facility, receive home care services or hospice care and such services are expected to be needed until death can now be financed by a life insurance policy rider. The bill provides additional tax credit inducements to encourage individuals to purchase long term care insurance or these new life insurance policy riders when they are younger.
Summary of specific provisions
Sections 1 - 4: Amends Tax Law sections 190, 210-B, 606, and 1511 to increase the tax credit for purchasing long term care insurance or a policy rider to a life insurance policy that provides for long term care-like coverages. The tax credit increases from 20% to 40% if the insured is less than 40 years old. The bill provides further a gradual decrease in the tax credit based on age (but which is still higher than the current law that establishes the tax credit at 20 percent). For persons less than 50 years old, the tax credit is 30%, for those older than 50, but less than 55 years old, the tax credit is 25%, and for those 55 years old or older, the tax credit remains the same as it is now at 20%.
Section 5: Amends Insurance Law section 1117 to make technical reference changes to ensure that the Department of Financial Services can review and approve of such Life Insurance Policy riders that cover Long Term Care services and ensure that they qualify for the Long Term Care tax credit.
Justification
The reason for the increase in the tax credit for those under the age of 40, 50, and 55 years of age is to encourage younger persons to purchase long term care insurance or policy riders to life insurance policies when the premium rate is cheaper. Over 80% of the New York Partnership for Long Term Care Insurance policies are purchased by persons over the age of 55. For persons over the age of 60 years, the average cost of a Partnership for Long Term Care insurance policy is between $3,000 and $6,000, for those under the age of 55, it is approximately $2,300.
Effective date
This act shall take effect on April, 1st of the year next succeeding its date of enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.