Washington State Delays Long-Term Care Program Launch

[Northeast Agent]

Washington State Delays Long-Term Care Program Launch | ThinkAdvisor

Washington state leaders say they will delay the start of a public long-term benefits program until the end of the state’s 2023 legislative session, to give state lawmakers time to adjust it.

The Washington Cares Fund program is supposed to use revenue from a 0.58% payroll tax to provide up to $36,500 in long-term care benefits for eligible program participants starting in 2025.

The state had planned to start collecting the payroll tax in January 2022. Workers could opt out by buying private long-term care insurance by Nov. 1.

One problem with the program was that so many workers applied for private LTCI that they swamped the LTCI issuers underwriting teams.

 

[marindependent]

Thanks for the share @Northeast Agent

 

[scagnt83]

Thanks for posting that. Glad common sense is starting to prevail.

 

[jesseslome]

Not sure how you define 'common sense' but my question to other agents is 'do you think the plan will be revised (thus continue) or be left to fade away into the sunset? Come on ... be brave and share your thoughts. Time will tell who was right in predicting what the state's elected officials will really do. Jesse Slome, American Association for Long-Term Care Insurance

 

[scagnt83]

Not sure how you define 'common sense' but my question to other agents is 'do you think the plan will be revised (thus continue) or be left to fade away into the sunset? Come on ... be brave and share your thoughts. Time will tell who was right in predicting what the state's elected officials will really do. Jesse Slome, American Association for Long-Term Care Insurance

Deciding not to go through with something that has obvious issues with its implementation, is almost a textbook definition of common sense.

I wish more government entities acted like that.

That doesnt mean the changes made will be done with common sense. Or that the original bill was created with common sense. But the decision to delay certainly is.

 

[ltcadviser]

The problem with the program was giving employees an opportunity to opt out. You can’t generate the requisite tax revenue if all of your high income earners game your system and opt out. I hope there aren’t any other states that try to mimic this. Complete waste of resources for our industry. We all have better things to do such as working with our clients that want to own strong benefits for the right reasons, not to simply apply for the least amount of meaningless coverage to try to avoid a payroll tax.

 

[LTCWA1]

I have the LTC exemption from Washington State. I submitted it to my employer. Employer confirmed and no deductions will take place. Do I need to keep the LTC I bought on the market? Will Washington State check at a later date if I have market based LTC insurance? (Sorry, it seems like dishonesty on my part but Wa state gov wants to charge me for something I will never use…long retired or dead.)

 

[Allen Trent]

wants to charge me for something I will never use…

Honest question. How can you know you will never use this?

 

[jcorr]

I have the LTC exemption from Washington State. I submitted it to my employer. Employer confirmed and no deductions will take place. Do I need to keep the LTC I bought on the market? Will Washington State check at a later date if I have market based LTC insurance? (Sorry, it seems like dishonesty on my part but Wa state gov wants to charge me for something I will never use…long retired or dead.)

The odds are NOT in your favor. There's a 70% chance you'll need some sort of Long Term Care. Whether it's help around in the home, moving to an assisted living facility or maybe even a skilled nursing facility, there is a really good chance that you'll need some sort of help at some level.