Why supporters of Washington’s long-term care program are worried
With a looming ballot initiative threatening to upend the finances of
But these may not be enough to save the fledgling program.
The tax that funds the program, known as WA Cares, is now automatically deducted from the paychecks of most workers in
With six months until
"Making this program voluntary is essentially a vote to end the program. It just is not financially feasible as a voluntary insurance program," said
Coe, along with other experts and long-term care advocates, spoke last week at a press briefing for We Care for WA Cares, a group that advocates for the program. Among the group's backers are the
WA Cares applies a 0.58% tax on
The tax went into effect last year. The program has been controversial since state lawmakers approved it in 2019.
Opponents say too many people are required to pay the tax who may never use the full benefit or even qualify for it. They also question the longevity of the program at the current tax rate and how much the limited benefit will help recipients afford care.
An analysis of the initiative released earlier this year found that making the program completely voluntary could make its finances unworkable.
It found that those with anticipated long-term care needs will be more likely to participate, but other workers, especially those earning higher wages, will likely opt out. In this scenario, the program would become more expensive for everyone left in it — a smaller pool of participants with the greatest needs.
Raising the premium to cover promised benefits would likely only drive away more people, worsening the decline, according to the analysis.
"If the cycle repeats without intervention, the program could become financially unstable and unsustainable with an inability to collect premiums that are high enough per person to cover benefits," State Actuary
Smith recommended the commission begin looking at risk-management strategies from other voluntary programs and to consider forming a separate work group to look at contingency planning, if the initiative passes.
That could include how the
Some commissioners were skeptical that any planning could save the program if voters approve the initiative.
"This seems like it will be a huge mountain to climb in sustaining the program in some kind of viable form," Commissioner
Advocates argue that the program is essential to help fund long-term care for thousands of Washingtonians who don't already have a plan to pay for it. The initiative would "destroy" the program, said
"People don't understand long-term care," Burns added. "They don't understand the need for financing. It's a giant issue that's going to show up later."


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