What's happening
This bill increases tax credits for long-term care insurance, especially for young purchasers and those facing approved premium hikes, and requires annual policyholder statements with detailed premium information.
Why it matters
Encourages younger people to purchase long-term care insurance by offering higher tax credits for those who buy policies at a younger age. the younger you are at purchase, the greater the percentage of your premium that is eligible for the tax credit (up to 50% for those under 30).
Provides additional financial relief to policyholders who experience approved premium increases. if your premiums go up due to regulatory approval, your tax credit increases from 20% to 25% of the premium, helping offset unexpected costs.
Promotes better consumer awareness and protection by requiring insurers to send annual statements with clear details about premium history and total payments. this transparency helps policyholders track premium increases over time and make more informed decisions about their coverage.
May influence the long-term care insurance market by incentivizing both early adoption and ongoing coverage. , potentially broadening the risk pool and stabilizing premium costs for everyone.
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Who cares
New York resident long-term care policyholders
For tax years beginning in 2018, the bill would tie their premium tax credit to age at purchase, offering a 50% credit for policies purchased before age 30 and lower percentages for older purchasers.
Corporate and insurance-company taxpayers paying qualifying premiums
The bill would raise their credit from 20% to 25% in years when premiums increase with Department of Financial Services approval.
Long-term care insurers
The bill would require annual statements by January 31 detailing policy start dates, insureds’ ages at inception, original premiums, premium increases and amounts paid.
Headline styles
Expand Long-Term Care Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Print number 2559a
- Amend and recommit to finance
- Reported and committed to finance
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–1
- Ordered to third reading cal.2009
- Committee discharged and committed to rules
- Reported and committed to finance
Show 1 earlier action
- 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.
Increase Long-Term Care Tax Credit
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2559--A
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sens. GOLDEN, ROBACH -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law and the insurance law, in relation to the tax credit for the purchase of long-term care insurance
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 190 of the tax law, as amended by section 102 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
1. General. [A] For taxable years beginning before January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance, and for taxable years beginning on and after January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance unless the premium for such insurance increased during the taxable year and such increase was approved after application to and by the department of financial services, then the amount of credit allowed for such insurance shall be twenty-five percent of the premium paid during the taxable year for such insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06027-02-8
S. 2559--A 2
§ 2. Paragraph (a) of subdivision 14 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
(a) General. [A] For taxable years beginning before January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance, and for taxable years beginning on and after January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance unless the premium for such insurance increased during the taxable year and such increase was approved after application to and by the department of financial services, then the amount of credit allowed for such insurance shall be twenty-five percent of the premium paid during the taxable year for such insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law.
§ 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as amended by section 1 of part P of chapter 61 of the laws of 2005, is amended to read as follows:
(1) Residents. [A] For taxable years beginning before January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance, and for taxable years beginning on and after January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article in an amount equal to the applicable percentage of the premium paid for such long-term care insurance. The applicable percentage shall be based upon the taxpayer's age when he or she purchased the long-term care insurance policy for which credit is claimed and shall be as follows: (a) for policies purchased prior to the age of thirty, fifty percent, (b) for policies purchased after the age of twenty-nine but prior to the age of thirty-five, forty-five percent, (c) for policies purchased after the age of thirty-four but prior to the age of forty, forty percent, (d) for policies purchased after the age of thirty-nine but prior to the age of forty-five, thirty-five percent, (e) for policies purchased after the age of forty-four but prior to the age of fifty, thirty percent, (f) for policies purchased after the age of forty-nine but prior to the age of fifty-five, twenty-five percent, and (g) for policies purchased after the age of fifty-five, twenty percent. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
§ 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as amended by section 21 of part B of chapter 58 of the laws of 2004, is amended to read as follows:
(1) [A] For taxable years beginning before January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the
S. 2559--A 3
taxable year for long-term care insurance, and for taxable years beginning on and after January first, two thousand eighteen, a taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance unless the premium for such insurance increased during the taxable year and such increase was approved after application to and by the department of financial services, then the amount of credit allowed for such insurance shall be twenty-five percent of the premium paid during the taxable year for such insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law.
§ 5. The insurance law is amended by adding a new section 3216-a to read as follows:
§ 3216-a. Documentation to be provided to long-term care policy holders. (a) All authorized insurers issuing insurance policies subject to the provisions of section one thousand one hundred seventeen of this chapter shall issue to each policy holder an annual statement that includes the following information:
(1) the date such policy took effect;
(2) the age of the insured on the date that such policy took effect;
(3) the original premium amount for such policy;
(4) for each premium increase, if any, the date and amount of such increase;
(5) the total amount of premium paid on such policy for the immediately prior calendar year; and
(6) the total amount of premium paid since the inception of such policy.
(b) For purposes of this section, the term "policy holder" shall mean any person who was a policy holder at any time during the year for which the annual statement is issued.
(c) The annual statement prescribed by this section may be combined with any other statements required to be given to such policy holders and shall be sent to such policy holders by the thirty-first day of January following the year for which the annual statement is issued.
§ 6. The insurance law is amended by adding a new section 4306-h to read as follows:
§ 4306-h. Documentation to be provided to long-term care policy holders. (a) All insurers issuing policies pursuant to the provisions of section four thousand three hundred four of this article and subject to the provisions of section four thousand three hundred six of this article that are for or include long-term care benefits shall issue to each policy holder an annual statement that includes the following information:
(1) the date such policy took effect;
(2) the age of the insured on the date that such policy took effect;
(3) the original premium amount for such policy;
(4) for each premium increase, if any, the date and amount of such increase;
(5) the total amount of premium paid on such policy for the immediately prior calendar year; and
(6) the total amount of premium paid since the inception of such policy.
S. 2559--A 4
(b) For purposes of this section, the term "policy holder" shall mean any person who was a policy holder at any time during the year for which the annual statement is issued.
(c) The annual statement prescribed by this section may be combined with any other statements required to be given to such policy holders and shall be sent to such policy holders by the thirty-first day of January following the year for which the annual statement is issued.
§ 7. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law and the insurance law, in relation to the tax credit for the purchase of long-term care insurance
Purpose or general idea of bill
To provide relief from the increased premium costs of long-term care insurance.
Summary of provisions
Section one of this bill amends Tax Law section 190(1) by providing that for taxable years beginning on and after January 1, 2018, the credit for long-term care insurance premiums that are paid during the taxable year shall be 20% of the premium paid unless the premium increased during the taxable year, and then the credit will be 25% of the premium paid during that taxable year.
Section two of this bill amends Tax Law section 210-B by providing that for taxable years beginning on and after January 1, 2018, the credit for long-term care insurance premiums that are paid during the taxable year shall be 20% of the premium paid unless the premium increased during the taxable year and then the credit will be 25% of the premium paid during that taxable year.
Section three of this bill amends Tax Law section 606(aa)(1) to provide that for taxable years beginning on and after January 1, 2018, taxpayers will be allowed a credit for long-term care insurance premiums paid during the taxable year equaling the applicable percentage of the premi- ums paid. The applicable percentage, which ranges from 50% to 20%, is based upon the insured's age at the time the policy was written.
Section four of this bill amends Tax Law section 1511 by providing that for taxable years beginning on and after January 1, 2018, the credit for long-term care insurance premiums that are paid during the taxable year shall be 20% of the premium paid unless the premium increased during the taxable year and then the credit will be 25% of the premium paid during that taxable year.
Section five of this bill adds a new section 3216-a to the Insurance Law. This new section prescribes information that must be provided to long-term care insurance policy holders on an annual basis.
Section six of this bill adds a new section 4306-h to the Insurance Law. This new section prescribes information that must be provided to long- term care insurance policy holders on an annual basis.
Section seven of this bill provides that this act shall take effect immediately.
Justification
In past few years, the Department of Financial Services approved signif- icant increases in premiums for many long-term care insurance policies. The increase for one insurance company was 60% of the current premiums, while another was allowed to increase the premiums by 50%. Upon receiv- ing notification of the premium increase, many New Yorkers, faced a difficult decision; find extra funds to pay the increased premium or reduce the policy's benefits. That is a difficult decision that this bill would help alleviate.
By using the age of the insured as the basis for the credit, those who purchased policies when they were in their younger years would receive a larger credit. These individuals acted responsibly and purchased poli- cies when they were young and healthy. Instead of forcing these individ- uals to make a difficult decision after paying premiums for a number of years, this bill will help them in this time of increasing premiums.
Prior legislative history
2018: S.2559 - Referred to Investigations and Government Operations 2016: S.6703 - Passed the Senate
Fiscal implications
To be determined
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.