SHB 1087, signed by Gov. Inslee in 2019, is damaging the long-term care market and your choices in Washington state. Private plans that might have worked for some are going away.

Mutual of Omaha and other long-term care insurance providers have seen a business uptick in the state, thanks to a payroll tax that starts hitting Washington workers in January and is intended to save the state Medicaid dollars by funding a long-term care program. The payroll tax on the way has made a lot of people aware that they can find a better long-term care investment through an actual long-term care provider than submitting to the inadequate entitlement program the state is requiring them to contribute to. And since the only option lawmakers have left workers is between buying one’s own superior-benefit plan in the private market by Nov. 1st or using the iffy and insufficient entitlement program their payroll taxes might make them eligible for after at least 10 years of paying in, the choice is clear for many young workers, high-income workers and people who might want to move out of the state in the future. 

Look at this document I came across from Mutual of Omaha: It outlines recent changes the company has made in response to the state forcing its way into the insurance market. It includes commission changes for sellers of long-term care insurance, increasing the minimum age for applicants to 40 and requiring the sales of more expensive inflation-compounding plans, among other provisions. I also heard today from a financial planner that the company is moving to suspend sales of long-term care insurance plans in the state very soon. 

The Legislature’s long-term care law continues to limit taxpayer options for long-term care needs.