You may have seen a staggering new tax on your recent paystub. Washingtonians now carry the burden of a state imposed long-term-care program. The citizens of our state deserve to have a choice in their long-term-care planning.
- As of July 1st, current and future W-2 workers will pay an additional tax of 58 cents for every $100 they earn – and there's no income cap.
- The solvency of the long-term-care program, WA Cares, is questionable. And the lifetime benefit associated with the program is not adequate for most people's long-term-care needs.
- This payroll tax impacts everyone but disproportionately hurts low-income workers and their families.
The need for long-term-care planning is real, but the WA Cares program dangerously promises peace of mind when the limited benefit is unlikely to cover actual needs. Many people won’t qualify for a WA Cares benefit even if they paid into the program.
The citizens of our state deserve a voice in planning long-term care that best suits their needs. Only with your continued support can we ensure our Health Care experts can continue to impact long-term-care policy in our state!
Instead of imposing new taxes and restricting choice, state lawmakers should repeal this unpopular long-term-care law and adopt messaging that encourages people to prioritize planning for end-of-life needs. The Legislature can also implement reforms that protect state safety nets and make high-quality, private, long-term-care coverage more accessible to everyone. Washington Policy Center's Center for Health Care recommends the following actions:
- Inform the public about the need to plan for long-term care and other life expenses, whether through insurance or other investments.
- Reform and protect Medicaid. The Medicaid program is intended for people living in poverty, and it is an important safety net. It is not intended to be used as long-term-care insurance for everyone, but it often is. Abuse of Medicaid is even encouraged. The state should close paths that allow system abuse.
- Washington state residents deserve access to a broader range of long-term-care planning choices. Lawmakers should encourage more private-sector competition by cutting insurance taxes and repealing regulations that limit the private long-term-care insurance that can be sold in our state. Workers should be able to access the best coverage at the best price.
With your timely gift of $50, $100, $500, $1000, or even as much as $5,000, will you help Washington Policy Center as we continue to provide alternative solutions to improve our state while bringing light to, and dismantling costly policy ideas?
For additional information on our policy recommendations, don't hesitate to get in touch with our Center for Health Care Director, Elizabeth Hovde.