The newly enacted Washington State Long Term Care Trust Act is a mandatory program which imposes a .58% payroll tax for all adult W-2 employees in Washington State beginning on January 1, 2022. It will pay for long-term care services for a short period but lacks the following benefits when compared to private long-term care insurance:
- No portability outside Washington
- No inflation protection greater or less than the Consumer Price Index
- No premium discounts for partners and spouses
- No cash benefits
- No shared care benefits
- No Partnership protection
There is only one way to permanently opt-out of the Long Term Care Trust Act and its new payroll tax: you must have other long-term care insurance in force before November 1st.
The Trust Act program could be less attractive to many when compared to the Washington Partnership for Long Term Care, a public/private plan. This plan is also endorsed by the State and contains many features and benefits not included in the Trust Act. You may want to compare the two programs, especially if your income and asset levels are above average.
For many, this Act will motivate you to create a long-term care plan now. Learn about your options so that you can make an intelligent decision. Contact us through this website or call 1-800-303-1527