Medi-Cal bailout money could be coming soon
Medi-Cal is the healthcare provider of last resort which covers millions of Californians. Medi-Cal is heading for a budgetary crisis. The states over sixty-five population is growing rapidly. The projection is that there will be eleven million Californian’s eligible for the state’s healthcare plan by 2030. That is 25% of the state!
The state is looking for money to pay for this emerging debt.
Next year the legislature will be considering creating a payroll tax. It will be modeled after the Washington States Cares Act which currently taxes employees 5.8% to pre-fund a small amount of long-term care expenses.
The California plan is likely to apply to all W2 earners as well as sole proprietors. Details are being worked out by the Governor’s Task Force for Long Term Care which has been working on the plan since 2019. Currently under discussion are ‘opt out’ provisions for people over 65, low-income earners and people who already own private long term care insurance policies.
When you are ready to talk to an expert about tLong-Term Care Insurance and how to protect you and your family, schedule a call: calendly.com/jimbetter. Find more long-term care stories and resources in our blog.