5 Most Important Things to know about Long Term Care Insurance & the WA Cares Fund1. What is Changing?Washington State has enacted a new law to fund a statewide long term care program called the WA Cares Fund. This program takes effect January 1, 2022, with a mandatory employee payroll tax/deduction. Anyone who works in Washington State pays 0.58% on their income earned or 58 cents for every $100 they earn.
- Examples of contributions to the WA Cares Fund: If earning $50,000 per year, you contribute $290 per year. If earning $100,000 per year, you contribute $580 per year.
2. Qualifying for the WA Cares benefitTo qualify for the State WA Cares Fund, you must have worked and contributed to the fund for:
- At least 10 years at any point in your life without a break of five or more years within those ten years, OR
- Three of the last six years at the time you apply for the benefit, AND
- At least 500 hours per year during those years
Close to Retirement?Applications to receive paid coverage for the WA Cares Fund are not available until 1/1/2025. The payroll tax begins effective 1/1/2022, so if you worked from the beginning of the tax (minimum of 500 hours per year), you would then need a minimum of 3 years of premium payments into the plan by your retirement date in order to qualify for the benefits. As the RCW’s state at this time, those who are under 3 years until retirement would pay the tax, but not meet eligibility for the benefit (due to working less than 3 of the last 6 years at the time you apply for the benefit).
3. How do I apply for an exemption?
The law allows for a Washington worker to apply for exemption from participating in the WA Cares Fund. To apply for a permanent exemption, you must:
- Have purchased a qualifying private long term care insurance plan before November 1, 2021. Definition of a qualifying plan: Office of the Insurance Commission;
- Be at least 18 years of age; and
- Submit an exemption application to the Employment Security Department (ESD). Exemption applications are available via the website starting October 1, 2021.
The Employment Security Department (ESD) is only accepting exemption applications through December 31, 2022.
If your application is approved by ESD, you receive an exemption approval letter or “Exemption Certificate”. You are responsible to submit this certificate to any current or future employers. Once your employer receives the Exemption Certificate, exemptions may take effect the quarter after your application is approved. Any WA Cares benefit premiums that were deducted will not be refunded. EXEMPTIONS – WA Cares Fund
4. Private Policy Eligible for State Exemption
WCIF Trustmark is offering Kitsap County employees an alternative to the WA Cares Fund with a Universal Life Insurance plan + Long Term Care Rider. This plan is an exemption eligible plan from the WA Cares Fund, and if you choose to enroll by the August 27, 2021 deadline, is issued before the state purchase deadline of November 1, 2021.
Interested in this possible alternative? Here is what you need to know!
- This plan is completely voluntary and is managed through WCIF and Trustmark’s Universal Life + Long Term Care Insurance.
- This benefit is not paid through Kitsap County payroll deduction. Since it is considered a private policy, you enroll and set up a secure premium deduction from your personal bank account with Trustmark. This is similar to how you set up car or homeowners insurance.
Important Note: The WA Cares Fund has clarified that they will not be requesting any re-certification periods of an issued Exemption Certificate. Once you are approved by the state for the exemption, you will not be asked again to verify an active alternative policy and you are permanently excluded from the WA Cares program.
5. Interested in more on Trustmark’s Alternative?
Your opportunity to enroll in a qualified alternative policy is open now! Employees hired before 7/27/21 are eligible to apply. The enrollment period is from August 2 through August 27th. The WCIF Trustmark policy is open to Kitsap employees and Spouse/Domestic Partners with multiple coverage options and a guarantee Issue value.
Please click to see the WCIF Trustmark flyer for a detailed explanation, side-by-side comparison of the plan vs. the State, and directions on how to access the enrollment portal to see plan options and rates.
Important Note: The WCIF Trustmark option is not tied to your employment status with Kitsap County. The policy is private which means it carries with you, regardless of your employer with no rate change or portability adjustments. |
