Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

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WoW2012
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by WoW2012 »

MrsBDG wrote: Sun Oct 03, 2021 9:57 pm Does anyone know, if a person lives in another state, but knows they are moving to WA in the next few years, can they get an LTC policy in their state and submit the opt out paperwork? is there anything that specifically says one must be a WA resident or have a WA policy at the time they opt out? If I own a policy in OR and move to WA, I don't have to get a new policy, so I could see some justification for this position, but, of course, it all depends how the exact rule is written.
The policy has to be purchased before 11/1/2021.
They have until 12/31/2022 to request the opt-out.
This works for people who buy policies outside of Washington and move to Washington.
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
MrsBDG
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by MrsBDG »

Don't cancel your policy until at least some time in 2023, to ensure that the auditing standards are understood. Also, don't screw your agent who will likely be paid $0 if you cancel in the first year.
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willthrill81
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

MrsBDG wrote: Thu Oct 07, 2021 11:02 pm Don't cancel your policy until at least some time in 2023, to ensure that the auditing standards are understood. Also, don't screw your agent who will likely be paid $0 if you cancel in the first year.
I'm not planning on cancelling my policy for at least the first couple of years and will probably hang on to it until I retire, assuming my plan to do so in the next 5 years or so holds. The likelihood of things being changed in such a way that I would be forced to pay the tax seems too high. And to your second point, I don't want the agent who's been great to work with to be left holding an empty bag.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
Isabelle77
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Isabelle77 »

Isabelle77 wrote: Wed Oct 06, 2021 6:28 pm
StoopieHippo wrote: Tue Oct 05, 2021 11:10 pm My husband (43yo) just got notified of his approval. He applied about an hour after I (35yo) did on Saturday morning. My application still only says submitted. :( Maybe it's due to my age?
My husband is still waiting and he also applied Saturday morning. He's 45 and has had the policy in place since the summer. So who knows?
Wanted to update this. It took 6 days (until this past Friday) for my husband's approval to come through. No idea why he was longer than everyone else, but wanted to add the data point.
Bmac
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Bmac »

Only close to 100 k exemption applications in the first week…

https://www.seattlepi.com/local/seattle ... 525078.php
WoW2012
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by WoW2012 »

Bmac wrote: Mon Oct 11, 2021 9:51 pm Only close to 100 k exemption applications in the first week…

https://www.seattlepi.com/local/seattle ... 525078.php
only?

1) Less than a year ago, the actuaries in charge of the WA Cares Fund predicted 95,000 TOTAL exemptions.
2) The website was down for roughly half of the first week.


Prediction: the exemptions will exceed 500,000.
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
jalm1
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by jalm1 »

WoW2012 wrote: Mon Oct 11, 2021 10:10 pm Prediction: the exemptions will exceed 500,000.
It will be interesting to see what the numbers are. I have to imagine we'll know in early 2022 (I can't see many people buying a policy before November 2021 and waiting till late 2022 to file for the exemption), and I would guess many people that purchased LTC coverage would be submitting early. Obvilusy we know it will be over 95k.

I was wondering how I would estimate the opt out number. I didn't spent a lot of time on it, but went over to datausa.io and looked at the 2019 wage distribution stats (https://datausa.io/profile/geo/washington#income_distro).
- The over $100k population is about 640k
- The $100-150k populations is about 375k
- The $100k to $200k population is about 510k
- The over $150k population is about 260k
- The over $200k population is about 130k

Everyones situation is unique, but I would doubt too many folks under $100k are opting out. It might make sense for some that are early in the career and are paying attention to these things. I would still think its small.

If you are over $200k and can obtain a plan I would guess most did, if they are paying attention.

So really it comes down to how much of the ~510k population between $100k and $200k did it i) make sense for someone to get a private policy, ii) are aware they needed to, and iii) did.

If I were a betting man I'd think somewhere between 250k and 300k opt-out (assuming it doesn't become a free for all of folks attesting they have a plan but dont really since it was just a click of the button). Simply I think its the $150k+ population + some folks from the under $150k ranks that are thinking ahead, offset by a portion of the $150k+ that either can't get a policy or haven't been paying attention.

Again, will be interesting to see where the numbers end up in early 2022.
BruDude
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by BruDude »

I had three more people call me today looking for policies that didn’t even hear about it until now. Lots of people had no clue or didn’t realize what had happened to the LTC market and thought they could just easily sign up for a policy any time.
Marseille07
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Marseille07 »

BruDude wrote: Mon Oct 11, 2021 11:25 pm I had three more people call me today looking for policies that didn’t even hear about it until now. Lots of people had no clue or didn’t realize what had happened to the LTC market and thought they could just easily sign up for a policy any time.
I don't blame them. I was very late to the party myself even though I had seen this thread long ago. It didn't register as impacting for some reason.
new_bogler
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by new_bogler »

WoW2012 wrote: Thu Oct 07, 2021 4:42 pm
MrsBDG wrote: Sun Oct 03, 2021 9:57 pm Does anyone know, if a person lives in another state, but knows they are moving to WA in the next few years, can they get an LTC policy in their state and submit the opt out paperwork? is there anything that specifically says one must be a WA resident or have a WA policy at the time they opt out? If I own a policy in OR and move to WA, I don't have to get a new policy, so I could see some justification for this position, but, of course, it all depends how the exact rule is written.
The policy has to be purchased before 11/1/2021.
They have until 12/31/2022 to request the opt-out.
This works for people who buy policies outside of Washington and move to Washington.
I am in the same boat myself. Just accepted a job offer that will require me to relocate to Seattle area next year from the east coast. Hopefully I can get a LTC insurance before Nov 1st but looking how busy the underwriters are, I highly doubt if I can get one before the Nov 1st deadline.
WoW2012
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by WoW2012 »

new_bogler wrote: Tue Oct 12, 2021 10:05 am
WoW2012 wrote: Thu Oct 07, 2021 4:42 pm
MrsBDG wrote: Sun Oct 03, 2021 9:57 pm Does anyone know, if a person lives in another state, but knows they are moving to WA in the next few years, can they get an LTC policy in their state and submit the opt out paperwork? is there anything that specifically says one must be a WA resident or have a WA policy at the time they opt out? If I own a policy in OR and move to WA, I don't have to get a new policy, so I could see some justification for this position, but, of course, it all depends how the exact rule is written.
The policy has to be purchased before 11/1/2021.
They have until 12/31/2022 to request the opt-out.
This works for people who buy policies outside of Washington and move to Washington.
I am in the same boat myself. Just accepted a job offer that will require me to relocate to Seattle area next year from the east coast. Hopefully I can get a LTC insurance before Nov 1st but looking how busy the underwriters are, I highly doubt if I can get one before the Nov 1st deadline.
In which state do you reside?
How old are you?
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
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willthrill81
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

BruDude wrote: Mon Oct 11, 2021 11:25 pm I had three more people call me today looking for policies that didn’t even hear about it until now. Lots of people had no clue or didn’t realize what had happened to the LTC market and thought they could just easily sign up for a policy any time.
I mentioned the act and its implications to several of my friends earlier this year, and none of them had even heard of it.

And yes, many seem to think that LTCi can be purchased as easily and quickly as auto insurance.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
barnaclebob
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by barnaclebob »

Bmac wrote: Mon Oct 11, 2021 9:51 pm Only close to 100 k exemption applications in the first week…

https://www.seattlepi.com/local/seattle ... 525078.php
My insurer (who provided cheap easy to get polices to my large company) didn't send out an email to apply for the exemption until yesterday either. Add at 2 more to that total...
Whakamole
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Whakamole »

This wasn't exactly publicized. I heard about it here.
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willthrill81
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

Whakamole wrote: Tue Oct 12, 2021 11:38 am This wasn't exactly publicized. I heard about it here.
A few newspaper articles in the western part of the state mentioned it this year, but it certainly wasn't widespread. And it's very clear on the 'WA Cares' site that they are trying to dissuade people from requesting an exemption.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
drk
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by drk »

Marseille07 wrote: Mon Oct 11, 2021 11:47 pm I don't blame them. I was very late to the party myself even though I had seen this thread long ago. It didn't register as impacting for some reason.
I heard about it through an investing interest group at work. Folks in that group made enough noise that the benefits administrators emailed all employees to inform them of the tax, scrambled to find a provider that could get a lot of people enrolled, and emailed all employees to let them know about the option. It was pretty impressive.
Marseille07
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Marseille07 »

drk wrote: Tue Oct 12, 2021 12:16 pm
Marseille07 wrote: Mon Oct 11, 2021 11:47 pm I don't blame them. I was very late to the party myself even though I had seen this thread long ago. It didn't register as impacting for some reason.
I heard about it through an investing interest group at work. Folks in that group made enough noise that the benefits administrators emailed all employees to inform them of the tax, scrambled to find a provider that could get a lot of people enrolled, and emailed all employees to let them know about the option. It was pretty impressive.
You work at a good place. I notified my place, but they decided not to provide a group policy at this time (i.e. they don't do anything).

I received my certificate, applied for exemption.
RoyHobbs9
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by RoyHobbs9 »

new_bogler wrote: Tue Oct 12, 2021 10:05 am
WoW2012 wrote: Thu Oct 07, 2021 4:42 pm
MrsBDG wrote: Sun Oct 03, 2021 9:57 pm Does anyone know, if a person lives in another state, but knows they are moving to WA in the next few years, can they get an LTC policy in their state and submit the opt out paperwork? is there anything that specifically says one must be a WA resident or have a WA policy at the time they opt out? If I own a policy in OR and move to WA, I don't have to get a new policy, so I could see some justification for this position, but, of course, it all depends how the exact rule is written.
The policy has to be purchased before 11/1/2021.
They have until 12/31/2022 to request the opt-out.
This works for people who buy policies outside of Washington and move to Washington.
I am in the same boat myself. Just accepted a job offer that will require me to relocate to Seattle area next year from the east coast. Hopefully I can get a LTC insurance before Nov 1st but looking how busy the underwriters are, I highly doubt if I can get one before the Nov 1st deadline.
Northwestern Mutual is still taking applications in WA. For the next couple weeks, they will draft before the 11/1 deadline to technically put the policy "in force" before the deadline, before you are even done with underwriting. Looking into my crystal ball (which I don't have), I see this happening with a couple of other carriers as well. As long as the proposed insured is reasonably healthy, I think it is worth giving it a shot. PM me if you are interested. I can't help at this point, but a colleague of mine possibly can.

Best of luck.
sunnysunshine
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by sunnysunshine »

The best part about having the long-term care insurance on my mother-in-law (besides the fact that it saved us over $100K in capital gains taxes and she's already received over $200K in benefits from her policy), the best part about the LTCi policy was that there was no hesitation in getting her the care that she needs AND there was no strife between her 3 adult children. Everyone knew that she had this LTCi policy which and we all knew that we should use it right away. And we did. No strife. No arguments. No arguing over which asset should we sell first to pay for her care.
Which LTC company ? My insurance agent does not offer LTC insurance
RoyHobbs9
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by RoyHobbs9 »

willthrill81 wrote: Thu Oct 07, 2021 11:06 pm
MrsBDG wrote: Thu Oct 07, 2021 11:02 pm Don't cancel your policy until at least some time in 2023, to ensure that the auditing standards are understood. Also, don't screw your agent who will likely be paid $0 if you cancel in the first year.
I'm not planning on cancelling my policy for at least the first couple of years and will probably hang on to it until I retire, assuming my plan to do so in the next 5 years or so holds. The likelihood of things being changed in such a way that I would be forced to pay the tax seems too high. And to your second point, I don't want the agent who's been great to work with to be left holding an empty bag.
I agree with the Mrs. and Will.

The state doesn't have the resources to "audit" or "certify" everyone, but when the incoming shortfall hits to somehow keep this fund "solvent," I wouldn't be surprised to see 6 digit income+ folks being targeted and asked to provide proof of LTC coverage down the road.

The "not screwing over your agent" hasn't played a role in how I feel about this. I got my own LTC policy and I'm a 1099. TBQH, dealing with the ineptitude surrounding my own old man's LTC situation and how much of a pleasure dealing with the VA has been, this has been an eye-opener.

The "Silver Tsunami" is going to destroy Medicaid and Medicare and everyone knows it. A lifetime benefit of $36,500 is a joke, even with the inflation increase. .58% of W2 income is a joke when the state actuary recommended .70%, before he/s knew everyone and their sister would opt out, and before he/s recalled WA's complete failure when it came to their failed 529 plan. This resulted in voters shooting down the state's ability to investment the fund in equities; hence, this thing is starting off at a $15B shortfall.

I'm not the sharpest spoon in the drawer, but how do you see this fund/tax going, especially when it got implemented when voters voted it down?
Marseille07
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Marseille07 »

RoyHobbs9 wrote: Tue Oct 12, 2021 10:08 pm I agree with the Mrs. and Will.

The state doesn't have the resources to "audit" or "certify" everyone, but when the incoming shortfall hits to somehow keep this fund "solvent," I wouldn't be surprised to see 6 digit income+ folks being targeted and asked to provide proof of LTC coverage down the road.

The "not screwing over your agent" hasn't played a role in how I feel about this. I got my own LTC policy and I'm a 1099. TBQH, dealing with the ineptitude surrounding my own old man's LTC situation and how much of a pleasure dealing with the VA has been, this has been an eye-opener.

The "Silver Tsunami" is going to destroy Medicaid and Medicare and everyone knows it. A lifetime benefit of $36,500 is a joke, even with the inflation increase. .58% of W2 income is a joke when the state actuary recommended .70%, before he/s knew everyone and their sister would opt out, and before he/s recalled WA's complete failure when it came to their failed 529 plan. This resulted in voters shooting down the state's ability to investment the fund in equities; hence, this thing is starting off at a $15B shortfall.

I'm not the sharpest spoon in the drawer, but how do you see this fund/tax going, especially when it got implemented when voters voted it down?
While I plan to keep the coverage for at least a year, all ESD could check is whether you had coverage by 11/1/21. Even if you cancel on 11/2/21, the fact remains that you had coverage by the date and that you permanently opted out of the state plan. I don't see how the state can somehow revoke your permanent opt-out and put you back in, regardless of their budget shortfall.
WoW2012
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by WoW2012 »

Marseille07 wrote: Tue Oct 12, 2021 10:26 pm While I plan to keep the coverage for at least a year, all ESD could check is whether you had coverage by 11/1/21. Even if you cancel on 11/2/21, the fact remains that you had coverage by the date and that you permanently opted out of the state plan. I don't see how the state can somehow revoke your permanent opt-out and put you back in, regardless of their budget shortfall.
What's so funny about this myth is how illogical it is.
Permanent opt-out means that once someone opts out they can never choose to opt-in again.
Permanent opt-out does NOT mean the government is powerless to revoke someone’s fraudulent opt-out.
And, yes, buying an insurance policy with the intent to cancel it in a few months, for the sole purpose of skipping a tax, is:
defrauding the insurance company AND
defrauding the government of legal tax revenue.
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
Marseille07
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Marseille07 »

WoW2012 wrote: Wed Oct 13, 2021 10:12 am Permanent opt-out does NOT mean the government is powerless to revoke someone’s fraudulent opt-out.
So you're saying your opt-out is revoked and you'll be taxed 0.57% yet you won't receive the state plan? I don't find your thinking logical at all.
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willthrill81
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

WoW2012 wrote: Wed Oct 13, 2021 10:12 am
Marseille07 wrote: Tue Oct 12, 2021 10:26 pm While I plan to keep the coverage for at least a year, all ESD could check is whether you had coverage by 11/1/21. Even if you cancel on 11/2/21, the fact remains that you had coverage by the date and that you permanently opted out of the state plan. I don't see how the state can somehow revoke your permanent opt-out and put you back in, regardless of their budget shortfall.
What's so funny about this myth is how illogical it is.
Permanent opt-out means that once someone opts out they can never choose to opt-in again.
Permanent opt-out does NOT mean the government is powerless to revoke someone’s fraudulent opt-out.
And, yes, buying an insurance policy with the intent to cancel it in a few months, for the sole purpose of skipping a tax, is:
defrauding the insurance company AND
defrauding the government of legal tax revenue.
This is absolute bunk.

The law is clear that those who have a LTCi policy on 11/1/2021 can permanently opt out of this tax. It says nothing about the individual's intentions regarding carrying that policy into the future. That may or may not have been lawmakers' intention, but that's completely beside the point.

Fraud (as a noun) and defraud (as a verb) have very specific legal definitions, and neither occurs if an individual buys a policy for the sole purpose of legally opting out of a tax and cancels that policy at any point afterward.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
pasadena
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by pasadena »

willthrill81 wrote: Wed Oct 13, 2021 11:05 am
WoW2012 wrote: Wed Oct 13, 2021 10:12 am
Marseille07 wrote: Tue Oct 12, 2021 10:26 pm While I plan to keep the coverage for at least a year, all ESD could check is whether you had coverage by 11/1/21. Even if you cancel on 11/2/21, the fact remains that you had coverage by the date and that you permanently opted out of the state plan. I don't see how the state can somehow revoke your permanent opt-out and put you back in, regardless of their budget shortfall.
What's so funny about this myth is how illogical it is.
Permanent opt-out means that once someone opts out they can never choose to opt-in again.
Permanent opt-out does NOT mean the government is powerless to revoke someone’s fraudulent opt-out.
And, yes, buying an insurance policy with the intent to cancel it in a few months, for the sole purpose of skipping a tax, is:
defrauding the insurance company AND
defrauding the government of legal tax revenue.
This is absolute bunk.

The law is clear that those who have a LTCi policy on 11/1/2021 can permanently opt out of this tax. It says nothing about the individual's intentions regarding carrying that policy into the future. That may or may not have been lawmakers' intention, but that's completely beside the point.

Fraud (as a noun) and defraud (as a verb) have very specific legal definitions, and neither occurs if an individual buys a policy for the sole purpose of legally opting out of a tax and cancels that policy at any point afterward.
+1. And it it was the lawmakers' intention, I trust them to plug that hole in the near future. ESD is supposed to write implementation rules. Let's wait for them to do this.
WoW2012
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by WoW2012 »

willthrill81 wrote: Wed Oct 13, 2021 11:05 am
WoW2012 wrote: Wed Oct 13, 2021 10:12 am
Marseille07 wrote: Tue Oct 12, 2021 10:26 pm While I plan to keep the coverage for at least a year, all ESD could check is whether you had coverage by 11/1/21. Even if you cancel on 11/2/21, the fact remains that you had coverage by the date and that you permanently opted out of the state plan. I don't see how the state can somehow revoke your permanent opt-out and put you back in, regardless of their budget shortfall.
What's so funny about this myth is how illogical it is.
Permanent opt-out means that once someone opts out they can never choose to opt-in again.
Permanent opt-out does NOT mean the government is powerless to revoke someone’s fraudulent opt-out.
And, yes, buying an insurance policy with the intent to cancel it in a few months, for the sole purpose of skipping a tax, is:
defrauding the insurance company AND
defrauding the government of legal tax revenue.

This is absolute bunk.

The law is clear that those who have a LTCi policy on 11/1/2021 can permanently opt out of this tax. It says nothing about the individual's intentions regarding carrying that policy into the future. That may or may not have been lawmakers' intention, but that's completely beside the point.

Fraud (as a noun) and defraud (as a verb) have very specific legal definitions, and neither occurs if an individual buys a policy for the sole purpose of legally opting out of a tax and cancels that policy at any point afterward.
This is absolute bunk.
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
WoW2012
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by WoW2012 »

Where does it say in the law that you can buy a policy before November 1st, 2021, cancel the policy a few months later, and be exempt from paying the tax for the rest of your life? It doesn’t say that.

That’s why the legislature was smart enough to allow the ESD to verify ownership of LTCi in order to stop people from cheating the system.

1) There is no "LTCi database"
2) They are NOT manually approving exemptions.
3) The exemptions are auto-approved based solely upon your proof of age and your attestation that you own long-term care insurance and purchased it before November 1st, 2021.

They have not made any rules regarding verification of ownership of long-term care insurance.
The verification rules will probably be hashed out in the next legislative session.
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
Marseille07
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Marseille07 »

WoW2012 wrote: Wed Oct 13, 2021 12:11 pm Where does it say in the law that you can buy a policy before November 1st, 2021, cancel the policy a few months later, and be exempt from paying the tax for the rest of your life? It doesn’t say that.
It doesn't say that, which means there's nothing prohibiting us from doing so. This is law 101.
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willthrill81
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

Marseille07 wrote: Wed Oct 13, 2021 12:18 pm
WoW2012 wrote: Wed Oct 13, 2021 12:11 pm Where does it say in the law that you can buy a policy before November 1st, 2021, cancel the policy a few months later, and be exempt from paying the tax for the rest of your life? It doesn’t say that.
It doesn't say that, which means there's nothing prohibiting us from doing so. This is law 101.
Of course. If the law doesn't prohibit an action, then that action is legal and engaging in that action is not fraud and nor is doing so defrauding anyone. It doesn't mean that that action is ethical or moral, but that's a different issue.

With extraordinarily few exceptions (e.g., the Bill of Rights), laws do not 'grant' the ability to engage in an action; they virtually always restrict actions. And the Bill of Rights does not actually grant rights; rather, it merely acknowledges in a legal manner that those rights already exist.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by LadyGeek »

The discussion regarding policy cancellation is getting contentious. The points have been made, let's move on.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by sbh8 »

Do all policies have a 30 day free look period?
What date does that period start? Is it the certificate date or another date?
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

sbh8 wrote: Thu Oct 14, 2021 10:56 am Do all policies have a 30 day free look period?
I don't recall NYL ever offering such a period to me when I applied for my LTCi policy a few months ago.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by drk »

drk wrote: Thu Sep 23, 2021 2:17 pm I assume that's a re-authorization to confirm that the card is still open before they finalize the approval. Last month, I had a similar pending charge on my credit card from Transamerica, then a week later received two snail mail notices on the same day:

1. A letter explaining that my application was still in-process, but that they were going to charge my card for the whole year's premium rather than one month
2. An information packet detailing my newly-accepted policy

A few days later, my card was charged for the first month premium.
Following up on this to add that:

1. Last week, I called TransAmerica to check that I didn't misread the notice about charging my card for the full-year premium, and the CSR confirmed that everything was set and that they would charge my card on file
2. This week, the rest of the full-year premium posted to my card
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Marseille07 »

willthrill81 wrote: Thu Oct 14, 2021 10:57 am
sbh8 wrote: Thu Oct 14, 2021 10:56 am Do all policies have a 30 day free look period?
I don't recall NYL ever offering such a period to me when I applied for my LTCi policy a few months ago.
My NYL policy has a 30-day free look period. I'm actually on it now, and could probably pull a hold-till-11/1-and-see-ya-later, but I don't think I will.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by almostretired1965 »

Just providing a data point on the delays on getting the exemption approval from WA state. I submitted my application on 10/6, but as of right now (10/14) it is still being processed (i.e. status = "submitted". )
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

Marseille07 wrote: Thu Oct 14, 2021 11:55 am
willthrill81 wrote: Thu Oct 14, 2021 10:57 am
sbh8 wrote: Thu Oct 14, 2021 10:56 am Do all policies have a 30 day free look period?
I don't recall NYL ever offering such a period to me when I applied for my LTCi policy a few months ago.
My NYL policy has a 30-day free look period. I'm actually on it now, and could probably pull a hold-till-11/1-and-see-ya-later, but I don't think I will.
Mine may have had some a period, but I wasn't looking for it since I have had no inclination to cancel the policy anytime soon.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Isabelle77 »

My husband received his exemption letter in the mail yesterday. I wanted to thank the forum for keeping us educated about the process. Very happy to not have to pay this tax.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by BergLust »

Isabelle77 wrote: Sun Oct 17, 2021 12:53 pm My husband received his exemption letter in the mail yesterday. I wanted to thank the forum for keeping us educated about the process. Very happy to not have to pay this tax.
Where did you apply? Perhaps I'm too late...but I reached out to StateFarm last week and they said as of the 8th of October they are no longer offering the policies with LTC riders. Northwestern Mutual seems to be quite expensive. Thanks!
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by Isabelle77 »

BergLust wrote: Sun Oct 17, 2021 1:04 pm
Isabelle77 wrote: Sun Oct 17, 2021 12:53 pm My husband received his exemption letter in the mail yesterday. I wanted to thank the forum for keeping us educated about the process. Very happy to not have to pay this tax.
Where did you apply? Perhaps I'm too late...but I reached out to StateFarm last week and they said as of the 8th of October they are no longer offering the policies with LTC riders. Northwestern Mutual seems to be quite expensive. Thanks!
Bankers Life back in the spring, I think they have stopped taking new policies as well.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by WoW2012 »

Isabelle77 wrote: Sun Oct 17, 2021 2:05 pm
BergLust wrote: Sun Oct 17, 2021 1:04 pm
Isabelle77 wrote: Sun Oct 17, 2021 12:53 pm My husband received his exemption letter in the mail yesterday. I wanted to thank the forum for keeping us educated about the process. Very happy to not have to pay this tax.
Where did you apply? Perhaps I'm too late...but I reached out to StateFarm last week and they said as of the 8th of October they are no longer offering the policies with LTC riders. Northwestern Mutual seems to be quite expensive. Thanks!
Bankers Life back in the spring, I think they have stopped taking new policies as well.
They still take age 50 to 70.
Disclaimer: I am a licensed insurance professional and am certified as a long-term care insurance specialist.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by willthrill81 »

Isabelle77 wrote: Sun Oct 17, 2021 12:53 pm My husband received his exemption letter in the mail yesterday. I wanted to thank the forum for keeping us educated about the process. Very happy to not have to pay this tax.
I got mine two days ago and have already forwarded a scanned copy to my HR dept. My thanks as well go to those who alerted everyone of this option.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by pasadena »

willthrill81 wrote: Sun Oct 17, 2021 2:17 pm
Isabelle77 wrote: Sun Oct 17, 2021 12:53 pm My husband received his exemption letter in the mail yesterday. I wanted to thank the forum for keeping us educated about the process. Very happy to not have to pay this tax.
I got mine two days ago and have already forwarded a scanned copy to my HR dept. My thanks as well go to those who alerted everyone of this option.
I got mine a few days ago too, but I already had the PDF from the website. My employer has yet to tell us how to proceed on their side, so I'm still waiting for that.
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Re: Washington State Long Term Care Trust Act - 0.58% payroll tax - $36,500 lifetime maximum benefit

Post by BruDude »

The WA Cares website has now been updated to say the following under FAQ:

Why can’t I upload my insurance policy?
Make sure you save your insurance policy, because you may need to provide it in the future. But you won’t need it for this exemption application
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