Employers have no obligation under Wisconsin law to offer long-term care insurance to their employees. However, if long-term care insurance is among the benefits offered, certain state law requirements limit how the plan may be designed.
Wisconsin law states that long-term care insurance policies cannot define a "preexisting condition" more restrictively than as a condition, whether physical or mental, regardless of the cause of the condition for which medical advice, diagnosis, care, or treatment was recommended or received within 12 months before the effective date of coverage (WI Stat. Sec. 632.76). Alzheimer's disease and other types of dementia are required to be covered by long-term care policies. However, an insurance company is not required to provide coverage to an individual who has such conditions when applying for coverage.
Group long-term care insurance issued in Wisconsin must provide terminated insureds with the right to continue under the group policy or convert to an individual policy that are the same as apply to group health insurance plans (Wis. Admin. Code Sec. Ins 3.455).
Individuals may deduct the amount that they pay for long-term care insurance from taxable income when calculating their state income tax obligation. This deduction applies to both policies that are designated as tax-qualified for federal income tax purposes and policies that are non-tax-qualified.