(The Center Square) – State Rep. Peter Abbarno, R-Centralia, is sponsoring a pair of bills in the upcoming legislative session to reopen a limited opt-out period for WA Cares, Washington’s long-term care insurance program, and let individuals who have paid into the program transfer benefits to a spouse.
The bills are co-sponsored by Rep. Joe Schmick, R-Colfax.
“Both of these bills are a recognition that this program, based on the failure of the initiative, is going to be a permanent program, but there are still flaws in the program,” Abbarno told The Center Square Monday, referring to the November failure of Initiative 2124, which would have made WA Cares optional.
WA Cares deducts 58 cents per $100 earned for every Washington worker to fund a limited lifetime benefit – up to $36,000 – for long-term care costs.
Before the program launched in July 2023, workers had a limited window to provide proof of a private long-term care plan and opt out of the mandatory payroll tax.
“There were about a half million Washingtonians who did get a chance to opt out and many more who were either confused and didn’t have all the information and didn’t opt out, or didn’t get out because insurance companies at that point couldn’t process claims fast enough and they shut that process down,” Abbarno explained.
House Bill 1025 states, “An employee who attests that the employee has long-term care insurance purchased before November 1, 2027, may apply for an exemption from the premium assessment.”
The bill would open a one-year opt-out window.
Exempt employees would not be entitled to a refund of any premium deductions made before the effective date of an approved exemption.
The other piece of legislation, House Bill 1026, would allow an individual to transfer any or all of the qualified individual’s available benefits units to a spouse.
“We live in a community property state and when one spouse is not bringing home income, it seems patently unfair that a spouse who is missing out on that community asset wouldn’t get to use the long-term care program,” Abbarno noted. “You can end up getting taxed in a payroll tax for your entire career, and you may never use this benefit, but God forbid your spouse needs it, they can never use it.”
The southwest Washington lawmaker told The Center Square these bills do not attempt to repeal the program but come in response to complaints he’s repeatedly heard from constituents.
“One of the main flaws in the program is that there are a lot of families that have a stay-at-home spouse, or a spouse who took a break from their career to raise a family, or maybe something happened and they got hurt at work and had to take a year or two off work to recover, and then they are no longer vested and have to start all over again,” Abbarno said.
Elizabeth New, director of the Center for Healthcare and Center for Worker Rights at the Washington Policy Center think tank, recently wrote a blog about the legislation.
“I will not be surprised to hear supporters of WA Cares say that HB 1025 is an attempt to end WA Cares, as they did with failed Initiative 2124,” wrote New. “But even if everyone forced to be in WA Cares leaves the program, lawmakers could not close up shop. The exemption only applies to LTCI holders who apply by Dec. 31, 2028. Further, many people will remain. They would then eventually be joined by others who enter the workforce and new residents after this reopened exemption window closes.”
Supporters of WA Cares argue the program is critical to protect aging workers.
According to researchers at the Center for Retirement Research at Boston College, more than half the population will need some long-term care assistance in their older years, with about one in four retirees eventually requiring high-intensity care.
The 2025 legislative session begins on Monday, Jan. 13 and is scheduled to end on April 27.
