Washington’s new WA Cares Fund
In 2019, the Washington State legislature enacted the Long-Term Services and Supports Trust Act (RCW 50B), becoming the first in the nation to take such a bold step toward addressing the coming long-term care crisis. The Aging and Long-Term Support Administration is one of four agencies, along with the Employment Security Department, the Health Care Authority, and the State Actuary, tasked with implementing and administering the program, which has now officially been named the WA Cares Fund.
The WA Cares Fund is one significant way Washington is addressing the anticipated growth in our state’s aging population, which mirrors national trends. An estimated 7 out of 10 older adults will at some point need help with activities of daily living such as medication management, dressing, or bathing. As our population of older adults grows, the state will need to invest more money in providing assistance for Washingtonians needing these types of assistance, known as long-term services and supports.
Long-term services and supports are expensive and most people are not financially able to pay for them when they need them. In most cases Medicare does not cover them, and only about seven percent of us have private long-term care insurance. Unpaid family caregivers often step in to support their loved ones, but in so doing they often sacrifice their own career and/or financial security, and the changes in roles can put a strain on family relationships. Many older adults do not have anyone in their family who can care for them.
The only and final safety net for long-term care is Medicaid — forcing many Americans to deplete their life savings and fall into poverty before they can qualify for assistance in meeting their LTSS needs.
Under this law, individuals will have access to a total lifetime benefit of $36,500, adjusted annually to maintain purchasing power, to pay for long-term services and supports beginning in 2025. To finance this program, employed workers in Washington will begin contributing just over one-half of one percent (0.58%) of their wages to the WA Cares Fund in January 2022. Individuals who are self-employed or independent contractors can opt in to the program, allowing them to contribute and earn benefits just as employed workers do.
Washingtonians who contribute to the Trust will feel secure throughout their working lives, knowing they will be better prepared to access and pay for needed services. The benefit is not means-tested, meaning Washingtonians will not need to deplete their life savings to qualify for this benefit. Benefits will include targeted services designed to support family caregivers in their caregiving roles while also attending to their own well-being and needs.
The LTSS Trust will enable Washingtonians to age in place, allow family caregivers to remain in the workforce, and relieve the fiscal strain on the state’s Medicaid budget by preventing or delaying older adults from needing Medicaid.
You can learn more about the program and sign up for updates on the new WA Cares Fund website at http://wacaresfund.wa.gov.