Your thoughts on the WA State Care Fund-Payroll Enforced Deduction

[Your thoughts]

So I’m curious to see how everyone else feels about this WA Care Fund that is to start with your 1st pay check in January 2022?
For me personally I recently retired but for my husband he’s still working for maybe another 5 years so the payroll deductions for those 5 years he will never be able to use any of it if I’m understanding it correctly it says you must had worked no less than 10 years to do so and also if you move out of State that money is as good as gone, it is only to use if you stay in the State of Wa. unlike some retiree’s that move to warmer climates???
So what do you all think of this State enforcement?

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[Vanessa]

For every $100 earned, you’ll be taxed .58 cents. I know that doesn’t sound like a lot, but it’s yet again ANOTHER tax put upon the people. We didn’t get to vote for this, it was just the State trying to recover future costs. Most of us won’t be using any of this Long Term Care coverage/services…all $36,000 dollars worth of services. I believe that amount is a lifetime amount given. 36k would cover 6 months of in home care for a 6 hour day at approx $34 an hour. That’s an approx hourly charge from a home care agency. The only way to opt out was to have your own private Long Term Care coverage. You need to sit down and see what that costs if you’re over 50. I’ll be considering it a donation, and will take it off as either a medical deduction or a donation when it comes to filing.

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[Graciano]

As per the state, they can raise the tax from .58 up to $1.00 per $100 earned. I called my local insurance company… $428 per month.
Also says the taxation starts Jan 1st 2022 and benefits can start in 2025, but you have pay in for 10 years or three of the last six years.

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[aa]

This one is making me crazy!! It is so poorly planned, the total benefit is a joke, that amount wont be enough to make a dent on anyone’s long term care, its taking money from people who will never be eligible to collect because they will stop working before ten years have passed, or move away. if anyone can share the groups fighting this I’d appreciate it. The governor and legislators behind this need to hear from us that this is not ok. I also think if people don’t read the details, they will think this money is going towards actual long term care insurance rather than a bucket of money that may or may not ever have any personal benefit.

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[Your thoughts]

aa, exactly! You said it so much better than I, this IS a joke and how can the State get away with this and especially now after the past 2 years of people struggling thru the pandemic and just getting by as it is?!
This was on the ballot and the people rejected it but the Legislators over-rode it and put it thru anyways.
If anyone reading this as “aa” asked—if you know of any groups fighting this please let us know who so we can fight along with them, this is just wrong.

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[hammerhead]

OMG thank you so much for some explanation. I am self employed. I do NOT even know how this affects me. I do NOT have any family to take care of me if something happens to where I can not work. My clients certainly are not going to pay me when I can not work.

Shoot I have great life insurance so might be better off dead. I mean this seriously.

Some one who is self employed told me she would have to pay a monthly fee or something.

Thank you again for the infomation

Than one has to be in the “program” for a certain amount of years? As stated above.

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[Your thoughts]

Hammerhead, if I understand this correctly if you are self employed you don’t have to worry about the deduction and or enrolling onto it but if you want to opt in to this you need to get in touch at this website. wacaresfund@dshs.wa.gov

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[hammerhead]

I am seeing that. I am self employed no family. If break an ankle say I can not work. I have no way of getting any assistance. Savings, well I am sure you are well aware, covid killed that.

So I see this that this is a way of “social health care” but sadly it seems that the self employed get left behind. Now I understand this is more LONG term health care issue, such as anything terminal health issue. Again if I get anything terminal, I will not be able to afford to stay alive. Thank god for great life insurance.

I am still researching and will be making calls. shame on the government to pass this.

Especially the time line, can’t use it for at least 3 years or 10 years. I got confused on that. Many I know will be dead before that.

Thank you

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[mom2boys]

As a long term care provider I support this tax! It will be a good private pay bridge to medicaid and takes some of the financial burden off our states medicaid program.
At 36,000 that would buy 2 years of light assisted living in the facility until recently ran. 2 years was our required spend down to Medicaid. This could have helped a lot of people.
Frankly, most people do not prepare for long term care expense thinking they will never need care.
120 plus nursing homes in Washington have closed since 2019 due to low medicaid reimbursement. Our entire system needs an over haul but this will be helpful until that can be achieved.

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[aa]

Hammerhead, I can’t help but wonder why you have life insurance if you have no family to reap the benefit after you die, why spend your money on that? I am not in much better shape than you except while I am still able to be employed I have company medical benefits. Being self employed is not for the faint of heart and definitely requires a commitment to financial responsibility towards oneself. The long term care plan is not any kind of insurance. It is simply a bucket of money the state will collect that some people may be eligible to draw from at a lifetime max of somewhere around $38,000.You are not missing out on any great opportunity.

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[hammerhead]

I will more than likely have animals and they will need care, I have rescues lined up, that is why I have life insurance, as they are my children and will need to be cared for. I update my will yearly.

THAT some people may be eligible, well ALL PEOPLE should be eligible….that is my issue.

If anyone else has found out where to opt out can you post it. I am getting the run around for sure.

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[MiniCooper]

@hammerhead-
if I’m understanding you correctly this is not a “social health care plan” this is a deduction that is to come out of your hard earned pay to help bail-out the State of Wa.and they’re calling it WA State Care Fund.
If you are self employed as I assume you are you don’t have to worry about it but you can opt to be enrolled and to do so you log onto the WA.State Employment Security Dept.
Hope whatever you decide works out for you.

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[aa]

I have no knowledge of how self employed people fit into this, whether they are required to sign up or not. For people who will be subject to this tax, the only ‘opt-out’ route is by having your own long term care insurance and providing proof. If you do some Google searching you should be able to find more information and contact info.

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[Graciano]

Mom2boys
this may be a good deal only if you are planning on working for another 10 plus years otherwise i feel it is not.
The OP stated she recently retired and her husband plans on working only another 5 years those 5 yrs of him “paying into” this plan he will not be able to use any of it because if understood correctly the State is not going to pay out until Jan. 2025 but you will of had to of paid into it for 3 to 6 yrs??? not sure this part is confusing. With that said that money is as good as flushed down the toilet!
You also said our whole system needs an overhaul so why should us people that have worked hard all these years and have paid into the “system” fix something that won’t do any good for us?
This was on the ballot last November and the voters rejected it, how can legislation just overturn our vote?
The Wa. Care Fund is just not right especially for the near to retirement people.

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[Graciano]

mom2boys, you stated the State needs help with financial burdens due to medicaid so are you saying the State mis-ran their finances or the “people” have mis-used the State?
All employed people pay into this Trust Fund to have their medicare once they retire so this WA Care Fund is just another way of the Feds getting even more money from the working people?
Definition of:
Medicare
Medicare is an insurance program. Medical bills are paid from trust funds which those covered have paid into. It serves people over 65 primarily, whatever their income; and serves younger disabled people and dialysis patients. Patients pay part of costs through deductibles for hospital and other costs. Small monthly premiums are required for non-hospital coverage. Medicare is a federal program. It is basically the same everywhere in the United States and is run by the Centers for Medicare & Medicaid Services, an agency of the federal government.

Medicaid
Medicaid is an assistance program. It serves low-income people of every age. Patients usually pay no part of costs for covered medical expenses. A small co-payment is sometimes required. Medicaid is a federal-state program. It varies from state to state. It is run by state and local governments within federal guidelines.

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[mom2boys]

I’m very aware of the difference between Medicare and Medicaid. I’ve worked in long term care administration for 25 years.
People have not saved for their long term care needs which has put a burden on our state medicaid program. Daily rates for long term care residents on medicaid in facilities is so low MANY do not accept it as a form of payment. 120 nursing homes have closed since 2019 due to low daily rates.
This tax will help offset the burden on the medicaid program.

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[Sue]

I am so angry about this deduction. I am 58 and will be retiring in less than 10 years, and when I retire I am probably leaving Washington, so I will never see a dime of this benefit. I also can’t opt out because I am oxygen dependent, which means I do not qualify for any private long-term care coverage (believe me, I’ve tried, and long before this plan came up). So I have no way of opting out, and yet they are going to take my money even though I’ll never use it. I truly believe that anyone 5-10 years from retirement should be eligible to opt out without private coverage, but they’ll never do that since they need people like me to pay into it so they can pay out for everyone else.

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[MiniCooper]

@Sue, EXACTLY!!! But we have other people who think this is OK that we have money taken from our hard worked earnings to cover everyone else…not fair.

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[linda]

I’m in the same camp as those who object to this badly written law. I am one of those who is too close to retirement to ever benefit from the money I will be required to pay in for the remaining years I work. I recognize the value of having long term care insurance but at this time, cannot purchase an individual policy as all insurers have suspended the sale of these policies in the state of Washington. So I cannot legally opt out of this payroll deduction as I will not be able to buy a policy before the deadlines. This is also thanks to this badly written law where you only have to show proof you have insurance, there is no requirement you maintain that policy. So once you prove to the state you have it and are exempted, you can cancel the policy.
For those who pay in, at 10 years you’re vested and you can make claims for care with a lifetime maximum of $36,500. Many of the people I know in long term care will tell you that is a pittance compared to the cost of their care. And you can bet those costs are only going to go up in the course of the next ten years.
I wish I knew if there was a lawsuit to stop the implementation of this law. I’d be glad to sign on to it. Meanwhile, I get to just kiss my hard earned money good bye as I will never see it again. I’d be better off taking that payroll deduction and investing it myself. At least then I’d actually have a nest egg which I could use for long term care expenses and I’d also earn the interest on my money.

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[MiniCooper]

Change.org has a petition going to try and stop this, whether it will or not it couldn’t hurt to try by signing it.

https://www.change.org/p/jay-inslee-remove-the-mandatory-wa-cares-fund

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[Graciano]

BUMP

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[hammerhead]

signed thank you

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[Your thoughts.1]

Thought I’d give an update on this subject “for us”
My Husband created an account with the Wa State Employment Security Department and requested to not participate in the Cares Fund and they granted it but also informed him he would never be able to participate or use these funds in his lifetime…but was he really ever going to be able to use the funds if he hadn’t opt’d out since he only plans on working another 5 years—NO. If he had not asked for non-participation the State would still gladly take his money thru payroll deductions for the 5 years and he still couldn’t use them because you must pay into this fund for a certain amount of time. He took the letter to work, now lets see if his HR/Payroll gets it…not a company with an on-site easy access dept.!
Good luck to the rest of you short-timers at work.

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