Canadians are used to the idea of universal health care but not when it comes to LTC insurance and one warm weather state is considering introducing universal LTC insurance which could be a game changer for the elderly in that state
The state of Hawaii is looking at instituting guaranteed funding for a basic level of senior care for every resident, a first in the U.S., and a significant move for the LTC movement.
Hawaii State Senator Roslyn Baker will introduce a long-term care bill in the near future that could be a role model for other states and even nationally to help families afford the high cost of senior care.
“We think the timing is right, even though it’s an election year,” Baker told The American Prospect. “We’re going to work to help people understand exactly what the funding mechanism is, how small a tax burden it is, and just how it will help lots and lots of people afford the care they need.”
How much will the new program cost the state’s taxpayers? And who’s eligible?
Hawaii intends to implement a slight increase in the state’s general excise tax which is currently a 4% tax on a business’s gross revenue. Anyone who’s filed a state income tax return for at least 10 years is eligible to receive $70 per day for a total of 365 days. Interestingly, tourists to Hawaii would pay for 35% of the program while never benefiting from it. That in itself is a good deal for Hawaii residents.
“Our target was to look at what it would cost to help someone get four hours of home or community care,” Dr. Lawrence Nitz, a political science professor at the University of Hawaii at Mānoa who conducted research on long-term care financing for the state, explained to The American Prospect. “Seventy dollars means you could plan to go to work, you could take time to meet your child’s teacher. It’s enough to help people avoid losing their jobs, while still balancing care responsibilities.”
This potentially ground-breaking initiative is something Canada’s LTC community should watch with interest.
“Hawaii has a tradition of being at the forefront of health care policy,” Kevin Simowitz, the political director for Caring Across Generations, a national organization that aims to help people age with dignity and independence, told The American Prospect. “Long before the Affordable Care Act, Hawaiians had a plan to make sure that workers had quality affordable health care. This would not be the first time they’ve done something a little bit provocative and groundbreaking.”
Mahalo, Hawaii.
