THE SENATE	S.C.R. NO.	42
TWENTY-SIXTH LEGISLATURE, 2012		S.D. 2
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

 

 

REQUESTING THE LEGISLATIVE REFERENCE BUREAU TO CONDUCT A STUDY TO DETERMINE WAYS, OTHER THAN TAX INCENTIVES, TO ENCOURAGE EMPLOYERS TO PROVIDE AND PAY FOR LONG-TERM CARE INSURANCE AND INDIVIDUALS TO PURCHASE LONG-TERM CARE INSURANCE.

 

 

     WHEREAS, the Legislature finds that a major barrier to the widespread availability and purchase of long-term care insurance by the public is its high cost; and

 

     WHEREAS, the Legislature also finds that tax subsidies are one way to reduce the net price of long-term care insurance policies, making them more affordable; and

 

     WHEREAS, tax incentives are typically provided in two ways for the purchase of policies - through deductions, by which taxpayers subtract all or part of the cost of private long-term care insurance policies from their taxable income; and through tax credits, by which taxpayers receive a dollar-for-dollar credit against taxes owed; and

 

     WHEREAS, recently enacted health reform legislation will increase the threshold for deductibility of medical expenses from seven and one-half percent to ten percent, and since this provision is a deduction rather than a tax credit, the tax deduction for medical expenses is worth more to upper-income people than it is for moderate-income people who are in lower marginal tax brackets, and worth more to moderate-income people than it is to lower-income people; and

 

     WHEREAS, it remains unclear whether or not tax incentives are the most effective and efficient ways to promote the purchase of private long-term care insurance; and

 

     WHEREAS, options other than tax incentives should be identified to encourage the availability and purchase of affordable long-term care insurance options; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, the House of Representatives concurring, that the Legislative Reference Bureau is requested to conduct a study to determine ways, other than tax incentives, to encourage employers to provide and pay for long-term care insurance and individuals to purchase long-term care insurance; and

 

     BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to seek the input of businesses on employer-supported, feasible methods to encourage employers to provide and pay for long-term care insurance; and

 

     BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to submit its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2013; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of the Legislative Reference Bureau and the Director of Health.

Report Title: 

Kupuna Caucus; Long-term Care Insurance; Study; LRB