The Washington Cares Act: How Will It Work for Me?

The good news: Washington is the first state in the country to offer long-term care insurance for its aging residents. The bad news: As with most brand-new ideas, there are a few kinks in the system.

The Washington Cares Act provides Washingtonians long-term care benefits—including home care—of up to a lifetime maximum of $36,500 per person. That amount will increase with inflation. However, notes Seattle employment and labor law attorney Tamara Roe, “This is an earned benefit program—only those who contribute premiums are eligible for benefits.”

How Do I Qualify for WA Cares Fund Benefits?

To be eligible, you must have qualifying health needs and be vested in the fund, which requires working at least 500 hours per year in Washington state. “Once you have paid into the program for at least 10 years, without more than a five-year consecutive break in paying into the program, you will be permanently vested,” says Roe.

Temporary vesting is another option: “If you need benefits before becoming permanently vested, the state will look back six years from the date you apply for benefits. If you have paid in for at least three of those six years, you will be eligible for benefits.”

Am I Eligible if I’m Retiring Soon?

If you retire in less than three years from the date you start contributing to the plan, you will not be eligible for benefits. However, even if you know you will be retiring before eligibility, you are still required to start contributing as of Jan. 1, 2022, when Washington state employers will start taking a payroll tax out of paychecks.

How Much Will It Cost Me?

“Washington State employees will be assessed a premium equal to $0.58 per $100 of earnings—for example, if an employee earns $1,500 per biweekly pay period, they would be assessed a premium of $8.70 per pay period,” Roe explains.

“There is no cap on the amount of premiums that can be collected from Washington workers—this means highly compensated employees will pay more into the fund than moderately compensated employees but will only be eligible to receive the same lifetime benefit of $36,500. The premium rate will be reassessed every two years, but it is capped at 0.58 percent and may not ever exceed that amount.”

Can I Opt Out?

At first, the only way to opt out of paying the tax was to have qualified private long-term care insurance in place by Nov. 1, 2021, and to apply for an exemption through Washington’s Employment Security Department (ESD). Governor Inslee and the Washington legislature created additional exemption pathways effective in January 2023.

Whether you should get an exemption “depends on your specific circumstances and the benefits offered under your policy,” Roe says. “We recommend speaking with your insurance broker to find out more information in this situation.” 

Have Questions About Your Rights? Find an Experienced Attorney

Roe says the rules for the Washington Care Act are still being tweaked, and she expects updates in the future. If you have questions about Washington Cares, contact the state Employment Security Department or an experienced Washington state employment and labor attorney.