Hawaii's Early Bet on Long-Term Care Now Pays Off Millions

Hawaii was one of the first US states to foresee a long-term care crisis in the early 1990s. Its business leaders took early action to address the issue, setting an example for others to follow. Their efforts have already paid out nearly $50 million to local families in need. Between 1999 and 2012, Hawaii’s largest employers began offering long-term care insurance to their workers. This move was rare in other states, where such benefits were uncommon. Many companies even contributed to the premiums, easing the financial burden on employees.

Mike Taylor, senior vice president at First Hawaiian Bank, was among those who introduced the benefit in 1999. Years later, he used the same plan to support his own family. The insurance covers essential needs not included in standard health policies or Medicare, such as help with daily living activities.

In Hawaii, the cost of in-home care or nursing homes can exceed £100,000 a year. The $49.7 million already distributed is only the start, with hundreds of millions more expected to be paid out over the coming decades. The programme has provided critical support for families facing high care costs. Future generations can learn from Hawaii’s early planning and employer commitment. The state’s approach has already delivered tangible financial relief to those in need.