Washington Residents have One-Time Exemption to Purchase LTCI before Mandatory State Payroll Tax
The state of Washington has decided to try their hand at tackling the long term care crisis. Known as the Long Term Care Act, the state recently passed a law imposing a new payroll tax on all W2 employees. Beginning in January 2022 .58% of all income will be used to create a newly funded long term care program. Someone making $50,000 a year would pay $290 a year, someone making $150,000 a year would pay $870 a year, and there is no income cap.
On February 23 of this year the state approved HB 1323 which allows all employees a one-time exemption for those who own a qualified long term care policy inforce before July 2021. It is important to know this exemption is one-time and will not be allowed again. Private insurance policies provide far more comprehensive coverage than the state plan and in some cases at less cost. Here is a comparison:
While Washington employees will begin paying the tax in January of 2022, benefits will not be available until 2025. The lifetime maximum of the state’s plan will be $36,500. The current annual median cost in Washington for a home health aide is $72,369, an assisted living facility is $69,000, and a private room at a nursing home is $131,400. For nearly the same cost per year, you may be able to find a much better policy. We have a team of Long Term Care Specialists who can shop the market, compare prices, and help you get the best deal. Request a quote today and find a personalized long term care plan to fit your needs.
LTC Consumer is your "go to" long term care insurance resource for information on what some of your options are. We'll help you by deconstructing the issues surrounding long term care insurance and educate you on your options. For years all we have done is help people get educated and plan for a long term care event. We make it simple and free.