The initiative to make the WA Cares Fund, the state’s new long-term care benefit program, into a voluntary program is not expected to see action by the Legislature this session and should go to the ballot this November.
The Legislature has three options on actions it can take in response to an initiative:
- Adopt the initiative into law as presented.
- Adopt an alternative to the initiative, and then both the alternative and the original initiative are sent to the voters.
- Take no action and allow the initiative to go to the voters.
Initiative 2124 is one of six initiatives that were approved for the ballot this year. I-2124 is short and makes only a few substantive (though far-reaching) changes to the existing long-term care program law.
The initiative adds a short subsection that requires current employees and self-employed people participating in the program to affirmatively elect to stay in the WA Cares Fund long-term care program and requires the program to allow program participants to opt out at any time. The legislation also repeals the section that limited exemptions for most employees to those that had alternative long-term care coverage as of November 2021 – the process that caused confusion and the temporary collapse of the private long-term care insurance market in the summer of 2021. Combined, these changes effectively make the WA Cares Fund program into a voluntary program, not the mandatory program that it is currently.
The fiscal note for the initiative estimates that around 4.81 million people are currently enrolled in the WA Cares Fund program, and that between 25% and 75% of current participants will likely opt out of the program if the initiative passes. If 75% of current participants drop out of the program, the Employment Security Department estimates that the WA Cares Fund premiums collected will drop from a projected $952 million to $238 million in 2025 alone. The Office of the State Actuary notes that the initiative could result in the WA Cares Fund program eventually becoming unsustainable and insolvent.
Several bills are being considered by the Legislature in the 2024 session which make changes to the WA Cares Fund program – including SB 6072 and HB 2467, which address benefits portability and supplemental insurance. However, the Legislature does not consider them to be alternatives to the initiative, and they will not appear on the November ballot if they are passed by the Legislature this session.
This information is intended for educational purposes only and not as support or opposition to a ballot measure. AWC’s role is to provide factual educational information on the potential impacts of an initiative on cities. City elected officials may take positions on ballot measures, including statewide initiatives, using specific exceptions to the prohibition on use of public resources. City officials should familiarize themselves with PDC rules regarding ballot measures.