Washington State has enacted the first public long-term care insurance program. The Long-Term Care Trust Act creates a publicly funded long-term care benefit for Washingtonians that provides a basic level of long-term care protection for working residents.
It is early in the implementation process, but hopefully this initial summary will be helpful as further information becomes available:
http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/House%20Passed%20Legislature/1087-S2.PL.pdf?q=20200608142948
and an amendment passed in January 2020
http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/Senate%20Passed%20Legislature/6267-S.PL.pdf?q=20200608143457
Quick Summary
- Starting 2022 the state will impose a .58% payroll tax on all W-2 employees who reside in Washington.
- 3 out of 6 ADLs trigger. Capped benefit at 36,500 @ $100 a day. Benefits will grow with WA inflation rate. State will pay care providers directly. Providers will need to be on approved list, although it appears that family members can be paid if they complete a rather extensive course of training.
- In order to qualify to receive benefits, in addition to the 3 out of 6 trigger, you have to have paid the payroll tax for 10 years, or at least three of the last six years if you have a catastrophic disabling event.
- If you move out of Washington for 5 years you forfeit the premiums and the benefit.
- There will be an opt out for the self-employed, and an opt-out procedure for those who have private LTC insurance. Once you opt-out, you can’t get back in.
- The Trust Act Commission setting up the operations for the plan had their first meeting recently, which is why you haven’t heard much about how it’s all going to work.
- Statewide employer education will begin during 2020 – 2021, so employers should be getting some educational material in the near future.
- First payroll deductions begin January 1st, 2022
- Public outreach and education will begin in 2024
- First claim for benefits can begin on January 1st, 2025
- Trust Act Commission will issue its first report on participation, benefits paid and Medicaid savings on January 2nd, 2026