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Washington State Long Term Care Act Overview

June 02, 2021
The Washington Long Term Services and Supports Trust (LTC) Act was passed in 2019 and is slated to begin in January of 2022. Here is what you need to know:
  • This is the nation’s first public-operated long-term care insurance program.
  • The insurance will be funded by a mandatory payroll tax for all employees, without a cap, beginning at the rate of .0058%. 
  • The benefits include a maximum rate of $100 per day to a lifetime maximum of $36,000.
  • While the payroll tax becomes effective January 1, 2022, the benefits are not available until 2025. 
  • To receive the benefit you must have contributed: at least 10 years without a break of 5 or more years, or 3 of the past 6 years, and have a need for assistance with activities of daily living. Additionally, an employee must have worked at least 500 hours during each of the 10 years or 3 years to qualify.
  • Employees that plan to retire in the next 10 years will pay premiums but may never qualify for benefits. Additionally, retirees that move out of state will not qualify for benefits. 
  • There is a limited individual exemption period for those that already have a long-term care policy or those that have purchased LTC insurance prior to November 1st, 2021. Additionally, individuals must apply for exemption with the Employment Security Department between October 1st and December 31st, 2022.
  • Individuals that opt out of the program can never become eligible for benefits under the program.
The future costs of long-term care present a major personal and public financial liability. Bottom line, it is important to understand and assess your options. If you are interested in evaluating your personal long-term care strategy – we work with several industry professionals that can help.
Please let us know if you would like more information.