OLYMPIA — Two years ago, Washington became the first state in the nation to establish a defined benefit to help offset the costs of long-term care. Now, workers have just a few months to decide whether they want to buy a private plan and opt out of the state-managed program before a payroll deduction hits their paychecks starting in January.
Under the program, called WA Cares Fund, workers will pay a premium of .58% of total pay per paycheck, meaning an employee with a salary of $50,000 will pay $290 a year. Starting Jan. 1, 2025, people who need assistance with at least three “activities of daily living” such as bathing, dressing or administration of medication, can tap into the fund to pay for things like in-home care, home modifications like a wheelchair ramp and rides to the doctor. The benefit also covers home-delivered meals, and reimbursement to unpaid family caregivers. The lifetime maximum of the benefit is $36,500, with annual increases to be determined based on inflation.
Under an update to the law, passed by the Legislature this year, people who want to opt out of the state-managed program must have a private long-term care insurance plan in place before Nov. 1, and then apply for an exemption to avoid having the automatic deduction from their paychecks starting in January 2022.
Even though a private policy must be purchased before Nov. 1 to opt out, people have until Dec. 31, 2022, to apply for an exemption — which means they may pay a year of the premium unless they opt out before the payroll deduction starts. No rebates are offered for any premiums already paid, and once a person receives an exemption, they are not able to opt back into the state program, even if they change jobs.