SEATTLE - April 23, 2021 - Washington state has passed the nation's first public-operated, long-term care insurance program—the Long Term Care Act—which is paid for by employees through employer withholding as a payroll tax.

Short-term care benefit, publicly funded by a 0.58% payroll tax on all wages and remuneration, withheld quarterly by employers
Mandatory for all W-2 employees in Washington State (except those not otherwise explicitly exempt)

Self-employed, independent contractors, sole proprietors, partners, may "opt-in"
Those who are currently retired do not pay premiums and will not qualify for benefits
Private LTC insurance policyowners may "opt-out" of the program permanently by applying for an exemption between October 1st, 2021 and December 31st, 2022
LTC insurance must be owned or "purchased before November 1, 2021"
Average underwriting time is 90 months
I would have my application in by end of July 31 2021 to be able to opt out of the state plan

Oregon and Idaho residents who earn income in Washington are expected to pay the Trust Act payroll tax, but will not be eligible for benefits unless or until they later move to Washington.
The benefit unit "must be adjusted annually at a rate no greater than the Washington Consumer Price Index"

Will rates increase?
There is no guarantee that the payroll tax will remain fixed
At this time there is no minimum requirement of coverage under RCW 50B.04.085 (https://app.leg.wa.gov/RCW/default.aspx?cite=50B.04.085) for private long term care insurance policies

The best time to get advice and on the Washington State Long Term Care Trust Act

Contact
Les Robinson