The Washington Cares Fund is here as of July 1, 2023. The Fund is projected to be solvent through 2098 in a new analysis from a recent study published by the Office of the State Actuary. This is the first time Washington is doing this type of universal long-term care insurance program. It will be funded by worker contributions. The Washington Cares Fund will be implemented by collecting a new payroll tax on workers in Washington state.
It is now days into the WA Cares Fund where employers in Washington state will start deducting premiums from workers’ paychecks. Some workers will be exempt.
However, workers in Washington who are not exempt, will pay a tax of 0.58% of their wages. It has been four years since the passage of the Washington Cares Fund and now it is officially launching.
Leaders say that the program aims to make long-term care affordable and available to people across the state. Those that are eligible will eventually be able to access a $36,500 benefit. Exemptions include:
– Live outside of Washington
– Are the spouse or registered domestic partner of an active-duty service member of the United States armed forces
– Have a non-immigrant work visa.
– Are a veteran with a 70% service-connected disability rating or higher
A child going to the hospital for an emergency, one night stay, and x-rays can be as much as $40,000.In 2019, lawmakers passed legislation that created the fund detailing that Washington taxpayers who have contributed to the fund for 10 years can receive the $36,500 lifetime benefit to help pay for long-term care needs.
It hasn’t been all smooth sailing for the Fund. Back in 2022, a federal class-action lawsuit was filed on behalf of three businesses and six individuals. Their suit stated that the WA Cares Fund violates a federal law that forbids the state from passing any law that requires employees to participate in a plan that provides sickness or medical benefits. The judge through the suit out stating that it is a state tax and therefore not within federal jurisdiction.
