OLYMPIA, Wash. — An initiative that would allow people to opt out of the state's long-term care tax could be headed to voters in November.
Otherwise known as the Washington Cares Fund, the state's long-term care tax is a first-of-its-kind program intended to help pay for long-term care expenses for aging residents, many of whom do not have their long-term care coverage or must rely on Medicare to pay for costs like assisted living, in-home nursing or a variety of other medical needs.
Under Initiative 2124, employees currently paying into the WA Cares Fund would have to elect to keep that coverage and would also be able to opt out of being covered and paying into the fund at any time.
The tax takes 0.58% out of paychecks earned by Washington residents and guarantees a $36,500 lifetime benefit for those who have paid into the fund for 10 years. After WA Cares passed, it drew criticism over concerns that it was expensive, wasn’t transferrable to other states, and only allowed for limited exemptions. Lawmakers expanded exemptions in 2022, but some say the changes don’t go far enough.
Washington workers must pay the tax unless they qualify for a limited number of exemptions passed by the legislature, such as if they live outside the state of Washington, are the spouse or partner of an active-duty member of the military, have a non-immigrant work visa or are a veteran with a 70% service-connected disability rating or higher. Initially, residents had the option to choose private long-term care insurance as opposed to paying into the fund, but that window has now closed. Paycheck deductions began on July 1, 2023.
The initiative was certified by Washington Secretary of State Steve Hobbs on Thursday. If the initiative is rejected or if the legislature takes no action by the end of the session on March 7, the initiative will be put on the November ballot for the next General Election. The legislature does have the option to pass an alternative proposal to accompany the ballot initiative.
KING 5's Drew Mikkelsen contributed to this report.