Washington has created a new state program for long-term care insurance. The purpose of the fund is to assist in covering the cost of in-home care or facility care, home modifications, meal delivery, car rides and caregiver training.
The fund is self-funded by worker contributions. Beginning January 1, 2022, Washington workers will be required to pay up to $.58 per $100 of earnings through a payroll deduction into the Washington Long-Term Care Fund.
To earn benefits, a worker must contribute for at least 10 years (without a break of 5 or more years) or they must have contributed 3 of the past 6 years at the time of application for benefits. January 1, 2025, is the first date benefits become available.
Self-employed individuals can opt-in and would pay .58% of their net earnings. This includes:
- Sole proprietors
- Partners in a partnership
- LLC members
Exemptions are available and are permanent once accepted. To apply for exemption, workers must:
- Have had a qualifying private long-term care insurance plan in effect before November 1, 2021.
- Be at least 18 years old
- Submit an exemption application to the Employment Security Department before December 31, 2022.
Employers will collect premiums from employees and will report those premiums using the WA Paid Leave reporting system.