HB 1087 establishes new, long-term care insurance program funded by employee premiums

Beginning on January 1, 2022, employers must begin collecting premiums for the new Long-Term Services and Supports Trust Program, which will provide long-term care insurance to employees in Washington.

Premiums will be paid entirely by employees through a 0.58% payroll tax remitted to the Employment Security Department (ESD). ESD will use the Paid Family and Medical Leave (PFML) Program as a model to establish the Long-Term Services and Support Trust Program’s collection and reporting process.

Under the new law, collective bargaining agreements in existence on October 19, 2017 are not required to reopen negotiations or apply any of the responsibilities of the law until the existing agreement is reopened, renegotiated, or expires.

Benefits will begin for eligible employees on January 1, 2025. To become eligible, Washington residents will have to work three years within the previous six years or a total of 10 years with at least five years of uninterrupted work. In addition, a person will have to work at least 500 hours in a year for that year to count towards eligibility. To qualify for the benefit, an individual must need help with at least three daily living tasks, as determined by Washington’s Department of Social and Health Services (DSHS). The maximum lifetime benefit will be $36,500 per person, with future increases tied to the consumer price index. Individuals who have purchased long-term care insurance can opt out of the program.

AWC will monitor agency rulemaking related to this new law and ensure that Washington’s cities are represented in the process.