Clark County voters will notice Initiative Measure No. 2124 concerning state long-term care insurance on the Nov. 5 ballot. According to the Clark County Elections Pamphlet, if adopted, Initiative 2124 would change how participation in the long-term care insurance, commonly known as the WA Cares program, works. Employees and self-employed persons who are currently participating in the program would be able to opt out at any time. A person who opts out would not contribute premiums to the program and would not be eligible for the $36,500 benefit.
The initiative would also require that employees or self-employed persons in Washington elect to keep coverage under the program. It would also repeal the statute that created a voluntary exemption for employees who had purchased long-term care insurance before November 2021.
WA Cares Fund Director Ben Veghte said that people often think they won’t need long-term care or don’t like to think about a future where they will need care, but the reality is that about 70% of people will need help to live independently at some point in their lives.
“Even though long-term care is a predictable cost, most of us don’t have a way to pay for it,” Veghte said. “Medicare and health insurance don’t cover it, and Medicaid is only available once you have spent down your life savings to just $2,000. That’s why our program is committed to informing workers about the need to plan for long-term care.”
Veghte said they often hear from workers who want to know how far the benefit of the long-term care insurance will go. The WA Cares Fund benefit starts at $36,500 and grows overtime with inflation. For about a third of people, who need care for a year or less, Veghte said this amount could cover all the care they need in a lifetime if they choose an in-home caregiver or other services and supports received at home. For everyone else, he said it will provide immediate relief from long-term care costs without the need to spend down their savings and give the family time to plan for future needs.
“Many people assume that their children will take care of them as they age,” Veghte said. “But with the population of Washingtonians age 85+ quadrupling from 2025 to 2050, the number of potential family caregivers available for each person in high-risk years for needing care is declining sharply. Care responsibilities can also destabilize a family caregiver’s economic security. On average, caregivers 50+ who have to leave the workforce early to provide care lose more than $300,000 in wages and benefits. As our population ages, the financial burden will be too great for the next generation to shoulder – which is why we are pre-funding our generation’s long-term care needs through WA Cares.”
Currently, Veghte said there are four groups of workers who are able to apply for an exemption on an ongoing basis. Veterans with a 70% or higher service-connected disability can apply for a permanent exemption, as they are eligible for some nursing home care through the VA. Other workers who can apply for a conditional exemption include workers who live out of state, temporary workers with a non-immigrant visa and spouses/registered domestic partners of active-duty service members of the U.S. Armed Forces.
“These groups qualify for the exemption only as long as these circumstances apply and workers must notify their employer and the Employment Security Department within 90 days if they no longer qualify,” Veghte said.
According to the Clark County Elections pamphlet, if voters approve Initiative 2124, there will be additional expenses to the state due to administrative costs. Estimated expenses for the first three state fiscal years combined are in the range of $12,623,250 to $31,215,960. There is an assumed decrease in state revenues due to workers opting out of the program and no longer paying premiums. It is unknown how many current and future workers will choose to continue to participate in the program. This makes the total impacts to revenue and program costs, including the amount for paying future benefits, indeterminate.
There are still currently a number of misconceptions surrounding the WA Cares Fund. Veghte said that many people haven’t heard yet that the legislature changed the law earlier this year to allow workers to take their WA Cares benefit with them if they leave the state. He said they also still hear from people who aren’t aware that the program offers a pro-rated benefit for near-retirees. Anyone who was born before 1968 (and is therefore unlikely to qualify for the full benefit by paying in for 10 years) earns 10% of the full benefit amount each year amount for each year they work.
“Some workers are concerned about solvency and want to know the program will be there for them in the future when they need care – and the good news is that the program is on solid financial ground, with the latest actuarial study showing the fund is projected to be solvent through the full 75-year period study,” Veghte said.
