Washington state voters recently rejected attempts to convert its long-term services and supports program into a voluntary one, but lawmakers already are renewing efforts to modify the program.
State Rep. Peter Abbarno (R-Centralia) is leading a trio of lawmakers in prefiling legislation to allow spouses to share the Washington Cares Fund LTSS program’s benefits with spouses and to reopen the opt-out exemption for anyone with private long-term care insurance.
“The long-term care payroll tax program has placed an unnecessary financial burden on workers and families across Washington state,” Abbarno said in a statement. “These bills are practical solutions that restore fairness, flexibility and relief to families left struggling under this deeply flawed system.”
WA Cares provides a lifetime maximum of $36,500 in long-term care insurance benefits to recipients. It is funded with a 0.58% payroll tax from all workers in the state. California, Illinois, Minnesota and Massachusetts also now are exploring their own public financing for long-term care programs.
Initiative 2124, which would have required employees in Washington state to opt into the program, failed in the November election. Abbarno has signed on to multiple previous failed attempts to repeal the program and has spoken out against the tax, according to The Chronicle.
LeadingAge Washington, the Washington Health Care Association and the AARP were among 150 health and safety net organizations that opposed Initiative 2124. The program also fended off challenges in the courts.
“Washington voters resoundingly affirmed their support for WA Cares, and the ongoing work to refine the program will continue through the LTSS Trust Commission [which works to improve monitor and implement the program],” a spokeswoman from the Washington Health Care Association told McKnight’s Senior Living, adding that creating another opt-out window would be “inequitable.” “Many people in Washington can’t afford private long-term care insurance, and a reduction in support will negatively impact our most vulnerable residents.”
WHCA also said that the spousal transfer idea would be expensive and require a reduction in benefits or an increase in the tax.
“Givne the important role of skilled nursing facilities and assisted living centers in our state, we will continue our work to help shape this program to support care provided in our sectors,” the spokeswoman said.
Abbarno’s latest effort, House Bill 1025, would allow workers who buy private long-term care insurance before November 2027 to opt out of the WA Cares program, after the initial opt-out window closed in 2022.
“The rushed and confusing rollout of the opt-out process left workers behind,” Abbarno said. “An unnecessarily narrow timeline punished families who acted responsibly to plan for their long-term care needs. By reopening the exemption, we’re giving them another opportunity to make the right choice for their needs instead of being forced into an inadequate, one-size-fits-all program.”
A second bill, House Bill 1026, would allow workers to transfer program benefits to a spouse who needs care, something not allowed currently under the program.
“Families make long-term care decisions together, yet the current system treats them as if they’re planning alone,” Abbarno said. “This bill fixes that by allowing spouses to share benefits — something that aligns with how families plan for their future.”
WA Cares was enacted in 2019. Workers began paying taxes into the program in 2023, and the state will begin paying benefits in 2026. The program pays for a “comprehensive array of long-term care services and supports, including assisted living, skilled nursing and in-home care, and expenses such as meal delivery or construction of wheelchair ramps.
The program provides opportunities for certain groups to opt out, including for workers who live outside of the state, who have private long-term care insurance policies, who are married to active-duty service members, who hold nonimmigrant work visas, or who are veterans with a 70% or higher service-connected disability rating.
Source: McKnights Seniorliving