Lawmakers revive long-term care trust proposal to fund home- and community-based services

The House Committee on Human Services reviewed a short-form proposal to establish a long-term care trust meant to create a dedicated funding stream for nursing-home care and home- and community-based services.

The sponsor described the trust as a way to build money over time so individuals have access to long-term care without relying solely on emergency state bailouts or high Medicaid expenditures. "This is not my idea. This has been in this building since the eighties," the sponsor said, arguing the trust could be structured as a mandatory long-term care insurance mechanism funded by payroll contributions.

Lawmakers discussed trade-offs and practical design questions. Members described the model as a form of compulsory long-term care insurance: contributors would gain an entitlement to benefits after qualifying. Representatives asked whether the trust would duplicate Medicaid or other state payments; the sponsor said Medicaid would still pay for those eligible, and the trust would supplement care or serve individuals who are above Medicaid thresholds.

Committee members noted the political sensitivity of introducing a payroll tax and asked about alternative models. The sponsor referenced several states that have considered or implemented similar ideas and cited Washington state's program as an example, noting Washington's maximum lifetime benefit was described to the committee as $36,500 (adjusted annually for inflation) in the referenced material. Members discussed whether funds would be drawn by individuals who apply, and the sponsor said funds would be available only to qualifying applicants and not a general bailout source for nursing homes.

No formal action was taken. Members directed interest toward further study and stakeholder testimony, including cost modeling, benefit design, and comparisons with other states that have advanced long-term care financing programs.