Implementation of Washington’s long-term care program should be delayed by 18 months, lawmakers in the state House and Senate decided this week.
The Senate voted 46-3 Jan. 26 to delay the collection of premiums and implementation. On Jan. 19, the House of Representatives did the same, voting 91-6 in favor of the bill. House Bill 1732 also requires employers to refund employees any premiums deducted before July 1, 2023.
Gov. Jay Inslee’s signed the bill Thursday.
The bill would result in the Long-Term Services and Supports Trust Program, known as WA Cares Fund, signed in 2019, to begin July 1, 2026, instead of its original start date of Jan. 1, 2025. It would also mean a pause on the collection of premiums. The collection would begin July 1, 2023, instead of Jan. 1, 2022.
The tax would have taken 58 cents for every $100 made by Washington workers. A person with an annual income of $70,000 would have $406 deducted yearly. The WA Cares Fund would provide Washingtonians with services like home-delivered meals, care transition coordination, memory care, wheelchair ramps and more. Each person would have coverage up to $36,500 over a lifetime.
The House debate had support from both parties.
“It allows for that eighteen-month delay so that we can address a few of the issues that we’ve heard about to ensure that the program is as effective and efficient as we can make it,” said Rep. Pat Sullivan, D-Covington.
Rep. Joe Schmick, R-Colfax, said one of the challenges is the number of people who opted out. According to the Employment Security Department more than 430,000 people have opted out, meaning they would not receive benefits or ever contribute to the fund.
Rep. Drew Stokesbary, R-Auburn, said the plan is insolvent. He said, according to the state actuary, “This plan is expected to run out of money by year 2075,” and that is based on an assumption of 105,000 people opting out. Stokesbary voted in favor of HB 1782 but said he wished there was a way to permanently delay the program and explore alternatives. Eight amendments were introduced, but none was adopted.
The creation of HB 1732 comes after Inslee announced last month he favored delaying implementation to give lawmakers the opportunity to make refinements.
“This bill will help provide much-needed care and coverage for Washingtonians as they age. However, legislators have identified some areas that need adjustments, and I agree,” Inslee said. “I am … ordering the state Employment Security Department not to collect the premiums from this program from employers.”