New Jersey lawmakers are considering a proposal that would study creating a state long-term care benefit funded through worker payroll deductions.
Trenton, NJ – New Jersey lawmakers have introduced legislation directing the Department of Health to study the cost of establishing a statewide long-term health care benefit program that could be funded through mandatory payroll deductions.
Assembly Bill A1663, sponsored by Assemblywomen Mitchelle Drulis and Carol A. Murphy, would require the state to examine potential public and public-private models designed to help residents prepare for long-term care needs later in life.
Key Points
• New Jersey bill orders study of long-term care benefit funded through payroll deductions
• Department of Health must analyze public and public-private insurance models
• Report with recommendations must be submitted within 365 days
The legislation directs the Commissioner of Health to evaluate two potential approaches to expanding long-term care coverage for residents.
One option would create a public long-term care insurance benefit funded through payroll deductions, offering workers a time-limited benefit that could help pay for services such as nursing homes, assisted living facilities, or in-home care.
A second model would establish a public-private reinsurance or risk-sharing program designed to help insurers cover catastrophic long-term care costs while expanding insurance availability for residents.
Study would evaluate financial risks and Medicaid savings
Under the bill, the Department of Health must analyze the potential impact of each model, including projected costs and benefits for participants, the expected number of people who would enroll, and possible savings to New Jersey’s Medicaid program.
The study must also evaluate legal and financial risks to the state and include feedback from the Assembly Aging and Human Services Committee, the Senate Health, Human Services and Senior Citizens Committee, and other stakeholders.
A final report containing findings and possible legislative recommendations must be submitted to the governor and state Legislature within 365 days of the bill’s effective date.
Long-term care costs continue to rise
Supporters of the measure cite rising long-term care costs as a growing concern for residents. According to the bill’s statement, the average cost of long-term care in New Jersey can exceed $65,000 per year, with the average stay in a long-term care facility lasting about 2.5 years.
National research cited in the legislation suggests that roughly one in four Americans who reach age 65 will spend at least a year in a nursing home or long-term care facility.
The proposed legislation does not immediately create a new program but instead authorizes a detailed analysis of potential funding structures and policy options.
Tags: new jersey legislature, trenton nj, health care policy
