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

[Workinprogress]

Is there any chance the employer policy is in any way tied to your employment status?

[WoW2012]

Is there any chance the employer policy is in any way tied to your employment status?

no

[Itogliano]

Any thoughts on changing to a cheaper policy? During the great LTCi scramble of 2021 I was only able to get a policy eligible for the exclusion as an attached rider to a life insurance policy. It currently costs about $45/mo. Now that the exemption scramble is basically over, if I'm able to find a dedicated LTC policy for (probably much) less, would that be a no-brainer? Has anyone else done something similar? Of course this is some speculation, but do you think changing policies is likely to screw up a previously approved exemption? Or should I just let it marinate for a few more months?

[forestbrook]

Any thoughts on changing to a cheaper policy? During the great LTCi scramble of 2021 I was only able to get a policy eligible for the exclusion as an attached rider to a life insurance policy. It currently costs about $45/mo. Now that the exemption scramble is basically over, if I'm able to find a dedicated LTC policy for (probably much) less, would that be a no-brainer? Has anyone else done something similar? Of course this is some speculation, but do you think changing policies is likely to screw up a previously approved exemption?

We actually have both the rider attached to a universal life policy ($37/month) and the NYLife ("bare minimum to match WA state's offering") regular LTC policy ($24/month) and have been wondering whether we should cancel one. And if so, which.

[Marseille07]

We actually have both the rider attached to a universal life policy ($37/month) and the NYLife ("bare minimum to match WA state's offering") regular LTC policy ($24/month) and have been wondering whether we should cancel one. And if so, which.

Why not cancel the more expensive one? Seems like an easy choice to me unless you think you'll actually need coverage.

[czaj]

So are folks waiting to cancel their policies in case of legislation updates?

[Marseille07]

So are folks waiting to cancel their policies in case of legislation updates?

I believe the program is set to start this July. As such, I think it's prudent to keep it at least until then.

[wingman4uz]

I’m still sitting tight and keeping my policy for now. I’ll reevaluate towards the end of the year.

[EnerJi]

I'm also keeping my policy, despite paying almost $80/month (ugh). I saw the language that @"Silly Wabbit" posted, but given the recent legislative changes, it doesn't seem definitive enough to risk canceling.

The suggestion another user made to consider switching to a cheaper policy is intriguing. It seems logical to me that as long as a policy was taken out during the exemption period and a similar policy is held continuously without interruption that it would be hard for the state to cancel the exemption. I think I'll consider doing this once the dust settles a bit more, which might not be until next year.

[arf1410]

though I may also keep my LTC insurance in place until July 1st "just in case" .. I did find this on a website for WSU employees:

"Those who applied for and received an exemption due to holding private LTC insurance prior to November 1, 2021 will not be required to provide ongoing proof, as this is a permanent exemption. The new exemptions available January 1, 2023, are not permanent and may require re-certifying over time."

https://hrs.wsu.edu/employees/benefits/ ... ort-trust/

[intendi]

though I may also keep my LTC insurance in place until July 1st "just in case" .. I did find this on a website for WSU employees:

"Those who applied for and received an exemption due to holding private LTC insurance prior to November 1, 2021 will not be required to provide ongoing proof, as this is a permanent exemption. The new exemptions available January 1, 2023, are not permanent and may require re-certifying over time."

https://hrs.wsu.edu/employees/benefits/ ... ort-trust/

Thank you for posting this.

[Marseille07]

though I may also keep my LTC insurance in place until July 1st "just in case" .. I did find this on a website for WSU employees:

"Those who applied for and received an exemption due to holding private LTC insurance prior to November 1, 2021 will not be required to provide ongoing proof, as this is a permanent exemption. The new exemptions available January 1, 2023, are not permanent and may require re-certifying over time."

https://hrs.wsu.edu/employees/benefits/ ... ort-trust/

I'm trying to decide this myself as I still have my coverage.

In a nutshell, I'm not so certain if there's any weight waiting till July 1st - it's not like someone comes knocking & demands proof of coverage on that day.

But I guess one thing to consider is if my company payroll makes a mistake on my paychecks post July-1st and I have to ask them to review the situation. This is when they might ask for evidence, even though I don't think they are by means required to verify coverage, as I've already submitted my exemption letter.

[arf1410]

The reason I will wait until into July at this point is /1/ Get thru the July paychecks verifying no deduction, and /2/ until the law actually starts, I am a bit concerned something could change. Of course things could change AFTER july 1st, but less likely...

[Marseille07]

The reason I will wait until into July at this point is /1/ Get thru the July paychecks verifying no deduction, and /2/ until the law actually starts, I am a bit concerned something could change. Of course things could change AFTER july 1st, but less likely...

Well my argument is that even if something happens and you get deducted, the exemption letter that you already have is *probably* sufficient to get it corrected.

Now the law could certainly change, but that won't happen on July 1st or anywhere near that.

I do agree it is safer to keep the coverage into July to verify a couple of paychecks though.

[Bloomie25]

LTCa is not insurance, it is a tax based on your income and with no state resident approval.

The Washington Long-Term Care Trust Act is a state-run, social program, to help pay for long-term care.
Private Long-Term Care Insurance is insurance regulated by 51 departments of insurance in the 50 states and the District of Columbia.

Washington state legislators overwhelming approved the Washington Long-Term Care Trust Act and they were overwhelming re-elected.

Yes, and when it was placed on the ballot as an advisory vote, the WLTCTA was rejected by a majority of voters (apx 63%). It’s likely that people re-elected the incumbents because they agreed with them on other issues, not this one. Certainly, I know that if a candidate shared most of my other viewpoints but was willing to vote to repeal the tax, they would have my vote before any incumbent. However, such candidates were not present in the elections held recently.

[Bloomie25]

though I may also keep my LTC insurance in place until July 1st "just in case" .. I did find this on a website for WSU employees:

"Those who applied for and received an exemption due to holding private LTC insurance prior to November 1, 2021 will not be required to provide ongoing proof, as this is a permanent exemption. The new exemptions available January 1, 2023, are not permanent and may require re-certifying over time."

https://hrs.wsu.edu/employees/benefits/ ... ort-trust/

Thank you for posting this.

Very much agree. Valuable information!

[daave]

though I may also keep my LTC insurance in place until July 1st "just in case" .. I did find this on a website for WSU employees:

"Those who applied for and received an exemption due to holding private LTC insurance prior to November 1, 2021 will not be required to provide ongoing proof, as this is a permanent exemption. The new exemptions available January 1, 2023, are not permanent and may require re-certifying over time."

https://hrs.wsu.edu/employees/benefits/ ... ort-trust/

Thank you for posting this.

Very much agree. Valuable information!

Be careful, WSU is not an authoritative source in this matter. Many organizations and attorneys have been confused by this law and its associated rules.

[czaj]

Any thoughts on the legitimacy of the language in the letter?

The letter states:

You’re exempt from paying the WA Cares premium and you’ll never be eligible to receive WA Cares benefits. Your permanent exemption takes effect on 1/1/2022.

Can they take that back?

[daave]

Any thoughts on the legitimacy of the language in the letter?

The letter states:

You’re exempt from paying the WA Cares premium and you’ll never be eligible to receive WA Cares benefits. Your permanent exemption takes effect on 1/1/2022.

Can they take that back?

If someone / a government agency incorrectly explains the law to someone in a letter, does that change the law to bind them to what’s in the letter? Does the agency who wrote the letter even have the authority to decide whether it’s permanent? Does somebody saying something is permanent prevent the law being changed in the future in a retroactive manner?

[arf1410]

Has anyone actually canceled their private LTC yet? Or going to wait until July? Or not cancel... just keep it in place?

[Marseille07]

Has anyone actually canceled their private LTC yet? Or going to wait until July? Or not cancel... just keep it in place?

At this point, I'm keeping until my first paycheck after 7/1 to make sure everything is OK then evaluate what to do then.

[OrangeKiwi]

Has anyone actually canceled their private LTC yet? Or going to wait until July? Or not cancel... just keep it in place?

I canceled a long time ago. The arbitrary deadline provision only made sense to me as a way for those “in the know” to save money, so I figured I would bet on them not changing things.