Long Term Care Insurance - New WA state tax

[mjedlin66]

Washington State passed a law that will impose a 0.58% income tax on all W-2 wage earners to pay for a public Long-Term Care fund.

Employees in Washington State have a one-time opt-out option. To opt out, an employee must have a "comparable" private plan in place AND opt out prior to November 1, 2021.

Benefits of the Washington State Long Term Care Plan:

Upon becoming eligible, a person may receive approved services of up to $36,500 over the course of the person’s lifetime. The DSHS will pay, in $100 increments (may be adjusted annually for inflation), long-term services and supports providers. These can include adult day services, in-home personal care, assisted living services, adult family home services, nursing home services, care transition coordination, dementia supports, home safety evaluation, adaptive equipment, respite for family caregivers, transportation, home-delivered meals, education and consolation, relative care, professional services, and services to assist family members to care for eligible individuals.

I calculate my cost for the tax would be $551/year at my current salary.

Looking at LTC Feds, I can get a $100/day 3-year plan indexed to inflation for $501/year. This plan has a lifetime maximum of $109,500.

LTC feds premium calculator:
https://www.ltcfeds.com/tools/premium-calculator

If you live in Washington State, now's your chance to do some math and decide what's best for you.

[TSPBandit]

What a timely post mj!! I've been searching for this very information as part of my retirement preparation and to take advantage of the opt out.

[ubascuba]

As federal workers, we are not subject to the tax, but I have not been able to find much information about the rules. The website for the program (wacaresfund.wa.gov) is very vague and is definitely a sales pitch. I have read that part time workers are also not subject to the tax. does anyone know where we can go to verify the rules?

[mjedlin66]

As federal workers, we are not subject to the tax, but I have not been able to find much information about the rules. The website for the program (wacaresfund.wa.gov) is very vague and is definitely a sales pitch. I have read that part time workers are also not subject to the tax. does anyone know where we can go to verify the rules?

Good catch. This is a fairly descriptive page that also claims we are exempt, until we take a non-federal job:

https://bullardlaw.com/news/alert/washi ... %20options

And here is the RCW:

https://app.leg.wa.gov/rcw/default.aspx?cite=50B.04

Here's how the federal employee exemption works- the law, 50B.04, defines "employee" per 50A.05.010, which states:
50A.05.010(5)(b) "Employee" does not include employees of the United States of America.

https://app.leg.wa.gov/RCW/default.aspx?cite=50A.05.010

So by working for uncle sam, you are not considered an "employee" under this tax. Once you get a job in the private sector, you become an "employee". And since the opt-out window will close soon, I'm still going to go through the motion of becoming exempt so that I can choose my own LTC provider in the future, should i ever become employed by someone other than uncle sam.

[IRQVET]

Washington is becoming an extension of California, which never met a law or a tax they didn't like. So buckle up, because this is what your future is going to look like moving forward . . .

[wingchaser]

Long-Term Health Insurance is the last (no pun intended) but ultimately the most important benefit we should be affording ourselves as Federal Civilians…

https://www.opm.gov/healthcare-insuranc ... term-care/

https://www.ltcfeds.com/long-term-care

https://www.benefits.gov/benefit/4591

Like anything else (in life), the most expensive option (Cadillac-Version), lends itself to the more “comfortable” life style…

Best of Luck (everyone) in all you choose to endeavor!!!