Date: 02/16/2006

Final
BILL SUMMARY for HB06-1298

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved to postpone House Bill 06-1298 indefinitely.
Refer House Bill 06-1298 to the Committee on Appro		PASS
FAIL


11:40 AM -- House Bill 06-1298 - Concerning An Income Tax Credit for Long-Term Care Insurance Purchases

Representative Hall, prime sponsor, explained that under current law, individuals may claim an income tax credit for long-term care insurance. The credit is equal to 25 percent of premiums paid for long-term care insurance, but it cannot exceed $150 per policy in any given year. Representative Hall said that to be eligible for the credit, an individual filing a single return must have federal taxable income of less than $50,000. Two individuals filing a joint return must have a combined federal taxable income of less than $50,000 if they are claiming a credit for one insurance policy. Two individuals filing a joint return can have a combined federal taxable income of less than $100,000 if they are claiming a credit for two insurance policies or a joint policy covering each individual separately.

Representative Hall continued by saying that House Bill 06-1298 raises the amount of the tax credit from $150 to $300 for each individual policy and from $300 to $600 for each joint policy that covers two individuals separately. The bill also increases the income threshold for which taxpayers may claim the credit. For example, an individual filing a single return can have federal taxable income of less than $65,000. Joint filers can have federal taxable income of less than $130,000.

The committee briefly discussed whether the credit under current law is achieving its intended purposes. Representative Hall commented that the Department of Revenue does not track the credit and is not known whether the credit is resulting in more persons buying long-term health insurance policies. The committee commented on whether doubling the value of the credit would provide a significant incentive given that most policies cost in excess of $2,500.

The following persons testified:

11:46 AM -- Mr. Euhice Krieger, Colorado Association of Homes and Services for the Aging, CAHSA , testified in support of the legislation. Mr. Krieger commented that the expense of long-term care can dissolve the savings of most individuals when they are on a fixed income. Mr. Krieger commented on the importance of planning for long-term care coverage and the expense that is associated with long-term care. Mr. Krieger closed by saying that 38 states have a tax credit for the purchase of long-term care coverage and encouraged the committee members to support House Bill 06-1298.

12:01 PM -- Ms. Mary Zuschleg, Long-Term Care Initiative (LTCI) and former nurse, testified in support of the legislation. Ms. Zuschleg commented on the disparity between long-term care Medicaid reimbursements and urged the committee to vote for House Bill 06-1298.

12:03 PM -- Mr. Ralph Leisle, representing self, testified in support of the legislation and distributed a handout to the committee members (Attachment A). He commented on the effect inflation is having on the cost of long-term care. Long-term care is growing by an average inflation rate of 6 percent per year making the cost of this care unaffordable for most persons on fixed incomes.

12:11 PM -- Ms. Julie, Hoerner, Senior Health Insurance Program, testified in support of the legislation.
BILL:HB06-1298
TIME: 12:12:58 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1298 to the Committee on Appropriations. The motion failed on a 7-6 vote.
SECONDED:McCluskey
VOTE
Benefield
No
Cloer
Yes
Crane
Yes
Frangas
No
Garcia
No
Harvey
Yes
Jahn
No
Kerr
Yes
Marshall
No
Massey
Yes
McCluskey
Yes
Judd
No
Vigil
No
Not Final YES: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1298
TIME: 12:16:01 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1298 indefinitely.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
No
Crane
No
Frangas
Yes
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
No
Marshall
Yes
Massey
No
McCluskey
No
Judd
Yes
Vigil
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS