How Hawaii Pioneered Long-Term Care Insurance Decades Ahead of the Crisis

Hawaii was one of the first US states to foresee a long-term care crisis in the early 1990s. Employers in the state took early action by offering long-term care insurance to their workers. This coverage helps with daily living costs not included in standard health plans or Medicare. From 1999 to 2012, Hawaii’s largest companies began providing long-term care insurance to employees. Many even contributed to the premiums, a rare practice elsewhere in the country. Mike Taylor, senior vice president at First Hawaiian Bank, led the introduction of such a plan in 1999 and later benefited from it personally for his family.

To date, approximately $49.7 million has been paid out to Hawaii families facing long-term care needs. In-home care and nursing home costs in the state can exceed six figures annually. Business leaders in Hawaii have been praised for their forward-thinking approach in shielding employees and their families from financial strain. The $49.7 million already distributed is only the start, with hundreds of millions more expected in future decades. Observers note that future generations can learn from Hawaii’s early and effective planning. The state’s model demonstrates the value of proactive measures in long-term care.