The California Long Term Care Insurance Task Force has developed a list of five possible LTC benefit programs, and hired a consulting firm to study each proposal. The state plans to use a payroll tax to pay for the new LTC program.

The proposed programs vary widely in benefits (and costs!). For example, one program would pay only up to $36,000 over two years, while another option would pay up to $144,000 over two years, but would not cover housing or facility-based care costs. Given these coverage limits and service limitations, it is likely that a freestanding LTC policy will still be the best option for most employees.

If you are a resident of California, now is the best time to consider an LTC policy because LTC carriers may temporarily suspend sales as residents rush to buy LTC insurance to avoid the tax.