Feb04

GOV INSLEE SIGNS BILLS TO DELAY, EXPAND EXEMPTIONS IN WA CARES LONG-TERM CARE PROGRAM

GOV INSLEE SIGNS BILLS TO DELAY, EXPAND EXEMPTIONS IN WA CARES LONG-TERM CARE PROGRAM
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Jay Inslee signed two bills to delay the WA Cares payroll tax on Washington workers and expand the number of people who can seek permanent exemptions to avoid paying into the first-of-its-kind long-term care program. The governor signed House Bills 1732 and 1733 just one day after Senate lawmakers voted them out of that chamber. The bills passed the House last week. The 0.58% payroll tax on employees in Washington — which amounts to $290 per year for someone making $50,000 annually — was set to begin Jan. 1.

That tax is now delayed until July 2023. Any premiums collected so far by private and public employers are to be refunded within 120 days. The delay also means that approximately 450,000 Washington residents who opted out of WA Cares by securing long-term care insurance through their employers or the private market are now making payments that they were told were necessary to avoid the payroll tax and the state program. Passed by Democratic lawmakers and Inslee in 2019, WA Cares is styled to be a social insurance program to help people pay for needs in sickness and old age. That could include things like transportation and meal preparation, and nursing care, assisted living and respite for those giving care to family members.

Under the bills, eligible beneficiaries in July 2026 could begin claiming up to $36,500 to pay for those needs. The benefits were originally designed to start in January 2025. But as the program got underway, a slew of concerns emerged from people who would have paid into the program but will never be eligible to receive benefits or get care under other programs.  That includes about 150,000 people who work in Washington but live in another state, like Idaho or Oregon; military families rotating through Washington; and some disabled veterans.

Under the signed legislation people in those categories will have the opportunity to get a permanent exemption from the program. Meanwhile, about 477,000 Washingtonians are near retirement age and may not become fully vested in the program as it is currently structured and claim full benefits. Residents born before 1968 who won’t be fully vested can receive partial benefits calculated by the number of years, they ultimately pay into WA Cares.

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Friday, 04 February 2022