Washington State recently passed the Long-Term Services and Support Trust (LTSS) Act and many employers have questions about the impact.
According to the State of Washington Department of Social and Health Services:
Under this law, individuals will have access to a lifetime benefit of $36,500 that will be adjusted annually for inflation. Beginning in January 2022, workers will pay $0.58 per $100 of earnings. Beginning in January 2025, workers who have vested in the Trust and need long-term care will be able to access their earned LTSS Trust benefits. These benefits can be used for a range of services and supports, including:
- Professional care at home, licensed residential or nursing facilities
- Home safety evaluations
- Home-delivered meals
- Training, pay and support for family members who provide care
- Rides to the doctor
- Adaptive equipment and technology like wheelchair ramps and medication reminder devices
Additional information from the State of Washington can be found here.
Important Key Facts that Employers and Employees Should Know
- Washington workers will pay $0.58 per $100 of earnings, beginning January 1, 2022. Employees will make the contribution, not the employers.
- Employers will be required to collect the contributions from employee wages.
- Employees can opt out of the tax if they have purchased Long-Term Care insurance, that is equal to or better than the state’s policy, before the effective date of this Act. Exemptions must be requested by November 1, 2021. The details of how to request an exemption are forthcoming.
- The window to submit and apply for the exemption is from October 1st, 2021 to December 31, 2022.
- As of 1/1/2025 eligible individuals can start receiving LTC benefits in WA state for $100 per day up to $36,500
- The estimated monthly median cost of long term care in Washington included: Home Health Aid – $6,031, Assisted Living Facility – $5,750, and Nursing Home Facility with semi private room- $9,581 (Source: Genworth)
For more information about providing a Long Term Care Benefit Option for employees, talk to your PayneWest Benefits Specialist.