WA Cares LTC Update

The WA Cares Fund is the nation’s first public state-operated Long-Term Care Insurance program. The law mandates long-term care benefits for Washington residents, paid for by a tax on employees’ W-2 income at a flat rate of 0.58%. The intention is to have the tax cover long-term care expenses incurred by the State. A class-action lawsuit filed against the WA Cares Fund was dismissed in April 2022 by the United States District Court for Western Washington.¹ The new target date for the proposed tax is in July 2023.

WA Cares Fund Update

• Workers will begin contributing to the fund in July 2023 and benefits become available July 1, 2026.²

• Workers who wish to apply for an exemption because they hold a long-term care insurance plan purchased by November 1, 2021, must complete an exemption application online with Washington Employment Security Department is December 31, 2022.¹

• Exemptions will be made available to groups who did not previously qualify, including workers who live outside of Washington, military spouses, workers holding non-immigrant visas, and veterans with a 70% or higher service-connected disability. (If a worker residing outside of the State moves to Washington, they are no longer considered exempt). Exemption applications for newly eligible groups will become available on January 1, 2023.²

• Workers near retirement (anyone born before January 1968) can earn 10% of the full benefit amount each year they work at least 500 hours.²

• If you opt out, your choice is permanent. If you are applying for an exemption, you will be permanently disqualified from the WA Cares benefit.²  Exemption application and instructions HERE

• Workers that have already been approved for a permanent WA Cares exemption because they hold a long-term care insurance plan do not need to reapply. Opting back in is not an option provided in current law.²

• Can you cancel private LTC insurance after you’ve received your exemption? The state has clarified that if you already have an approved exemption, it’s up to you to decide to maintain or cancel your private long-term care policy.²

If you have questions about the WA Cares Fund, please reach out to the team at Kaizen or get updates directly from the WA Cares Fund Website

Sources:

1. dshs.wa.gov
2. wacaresfund.wa.gov