(The Center Square) – Washington state begins paying benefits on Wednesday from the mandatory payroll tax funded long-term care program, known as “WA Cares.”
The program offers up to $36,500 in support for long term care services, through a mandatory payroll tax deduction of 58 cents for every $100 earned.
If someone make a gross annual salary of $85,000, the WA Cares Fund will take $493.00 per year from their paychecks.
“Beginning July 1, thousands of Washingtonians can access their WA Cares fund benefits to help cover the cost of an in-home caregiver, equipment, home modifications, meal delivery, and others,” said Governor Bob Ferguson during a June 30 event celebrating the WA Cares benefits launch at a home in Tukwila.
“Most of us will need long-term care at some point in our lives,” Ferguson said. “I’m proud Washington is the first state in the country to offer a program like WA Cares.”
Nearly a half million Washington residents are expected to need long-term care services within the next decade, according to the Department of Social and Health Services.
On June 24, one week before WA Cares benefits became available, the state’s Long-Term Services and Supports Trust Commission discussed the program launch and early applications.
“State officials described an application process that is moving faster than the 45 days allowed under statute. The median number of days between contribution determination and eligibility was eight days,” wrote Elizabeth New, Director & Policy Analyst Centers for Worker Rights and Health Care at Washington Policy Center in a June 24 blog post.
New noted that only a small number of Washingtonians have both met contribution requirements and have health needs just three years into contributions.
To be eligible, someone must contribute for at least three of the past six years and need assistance with three or more daily living activities including bathing, meal preparation or mobility issues.
In a Wednesday interview with The Center Square, New said she has many concerns about the WA Cares fund.
“The main guts of the program, I have trouble with. We all have life needs. I would rather see people keep more of their wages. I see this as a worker penalty,” said New.
“There’s also Medicaid long-term care available to people in need. This program is not for people in need. In some cases, you have low-income workers giving 58 cents for every $100 they earn, handing it over to people with no need for taxpayer dependency.”
Supporters argue the program fills a gap left by Medicare, and private insurance, which most Americans can’t afford.
“A public insurance program like WA Cares gives workers a more affordable way to pay for their long-term care needs by allowing them to contribute while they are working and their income is higher. Covering all workers also keeps contributions low and once someone retires, the contributions will stop,” said WA Cares Fund Deputy Director of Operations Jennifer Ferguson during last week’s Long-Term Services and Supports Trust Commission meeting.
Critics argue the benefit is too modest, capped at $36,500 lifetime, to meaningfully address long-term care costs.
“This is not making Washington more affordable. It’s making it less affordable, and it’s at the hands of our state government. They say seven out of 10 people will need long-term care. That means three out of 10 people won’t, right? So, you’re paying into something that you won’t use in some cases,” said New.
The WA Cares Fund website says the lifetime benefit of $36,500 will automatically increase with inflation each year. By 2033, the benefit is projected to reach approximately $43,400.
