Assemblywoman Barbara McCann Stamato, D-Jersey City, who represents Kearny in the general Assembly, has introduced legislation aimed at studying long-term care benefits for New Jersey workers and exploring the feasibility of financing such benefits through state-mandated payroll deductions.
Bill A5329 would address the growing need for affordable, long-term care options as New Jersey’s population continues to age.
Currently, long-term care costs in New Jersey can exceed $65,000 per year, with the average stay in a care facility lasting approximately 2½ years. National studies suggest one in four individuals who live to age 65 will spend at least one year in a nursing home or other type of long-term care facility.
These rising costs have made long-term care increasingly unaffordable for many families and there is a pressing need to explore solutions that will ensure all workers have access to the care they may need in the future.
The proposed legislation mandates the commissioner of health conduct a study to evaluate two potential models for providing long-term care benefits to New Jersey workers.
The first option involves creating a public long-term care benefit funded through payroll deductions, which would provide a time-limited long-term care insurance benefit.
The second option is a public-private reinsurance or risk-sharing model, which would allow the state and private insurers to share the financial risk of catastrophic long-term care losses, thus increasing the insurance capacity for the state.
The study will assess both options based on factors such as costs and benefits for participants, the total anticipated number of participants, projected savings to state Medicaid and any legal and financial risks to the state. Additionally, input will be gathered from the Assembly Aging and Human Services Committee, the Senate Health, Human Services and Senior Citizens Committee and other relevant stakeholders.
Within a year of the bill’s enactment, the commissioner of health will provide a report to the governor and the Legislature detailing the findings of the study, along with recommendations for any potential legislative or regulatory changes to improve long-term care benefits for workers.
McCann Stamato emphasized the importance of addressing the long-term care crisis in New Jersey.
“Long-term care is one of the most significant financial challenges facing New Jersey families,” she said. “The rising cost of care is simply unaffordable for many, and with our aging population, it’s more important than ever to find sustainable solutions. This study will help us assess the most effective ways to ensure that workers have access to the care they need without facing financial hardship.”
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Kevin A. Canessa Jr. is the editor of and broadcaster at The Observer, an organization he has served since 2006. He is responsible for the editorial content of the newspaper and website, the production of the e-Newspaper, writing several stories per week (including the weekly editorial), conducting live broadcasts on social media channels such as YouTube, Facebook, and X, including a weekly recap of the news — and much more behind the scenes. Between 2006 and 2008, he introduced the newspaper to its first-ever blog — which included podcasts, audio and video. Originally from Jersey City, Kevin lived in Kearny until 2004, lived in Port St. Lucie. Florida, for four years until February 2016 and in March of that year, he moved back to Kearny to return to The Observer full time. Click Here to send Kevin an email.