On February 12, the Senate passed SB 6072 on a 34-15 vote. During its time on the floor, the bill was amended with a striking amendment that made some significant changes to the underlying bill. Some of those changes include:

• Removes the provisions prohibiting out-of-state program participants from withdrawing their participation in the WA Cares Fund program and grants the Employment Security Department (ESD) the authority to cancel elective coverage of out-of-state participants for failing to make required premium payments or reports or levy additional premiums.
• Removes the provisions that a non-immigrant visa holder for temporary workers is subject to the WA Cares Fund program after becoming a permanent resident and modifies how the employee may be subject to the program by electing coverage.
• Removes the proposed exemption for concurrently employed military service members and the proposed changes to the expiration of certain exemptions.
• Reinstates the provision that WA Cares Fund statutes do not require reopening negotiations of collective bargaining agreements (CBAs) in existence on October 19, 2017, or applying WA Cares Fund to such CBAs until they are reopened or expire.
• Removes the provisions in the bill that would allow employees with alternative coverage exemptions to rescind their exemption and participate in the program.
• Clarifies inflation protection options and policy summary requirements for an individual life insurance policy that provides supplemental long-term care benefits within the policy or by rider.
• Modifies requirements for approval or denial of claims for benefits under supplemental long-term care insurance policies, including the insurer’s ability to request additional information for claims.

The bill is now in the House for consideration.

The cloud hanging over any discussion of amending the WA Cares Fund is Initiative 2124, which has been certified and introduced in the 2024 session. It would convert the WA Cares Fund from a mandatory to a voluntary program, likely undermining its solvency without additional adjustments. With initiatives, the Legislature can either adopt them outright during session, propose an alternative to appear alongside the initiative on the ballot, or do nothing and allow the initiative to appear on the ballot alone. The Legislature seems unlikely to pass the initiative outright, so it should be on voters’ ballots this November. So far, the Legislature has not proposed any alternatives to appear on the ballot alongside I-2124.

Dates to remember

SB 6072 is scheduled for a public hearing in the House Health Care & Wellness Committee on Tuesday, February 20 at 1:30 pm. It is also scheduled for a committee vote on February 21 at 1:30 pm.

Major changes for WA Cares long-term care program under new bill

January 19, 2024

A bill adopting some of the recommendations of the Long-Term Services & Supports (LTSS) Trust Commission could make significant changes to the WA Cares Fund long term care program. It is scheduled for a public hearing in the Senate Labor & Commerce Committee on Thursday, January 25 at 8 am.

SB 6072, sponsored by Sen. Karen Keiser (D–Kent), is based on number of recommendations from the LTSS Trust Commission. The bill makes major changes to aspects of the program, including introducing benefits portability, supplemental insurance, changes to certain program exemptions, and new employer reporting requirements, among other things.

The bill includes:

• Benefits portability: Permits employees who move out-of-state to continue participation in WA Cares, establishes a reporting system for out-of-state workers to report their earnings and pay assessments, and clarified how benefits will be adjusted for out-of-state participants.
• Changes to exemptions:
  • Permits non-immigrant visa holders living in Washington to opt into WA Cares.
  • New voluntary exemption for active-duty service members that have concurrent off-duty civilian employment.
  • Clarifies the exemption of military spouses and temporary visa holders that become permanent Washington residents.
  • Permits employees that opted out using alternative insurance in 2021 to rescind their exemption and opt into WA Cares by July 1, 2028.
• Supplemental insurance: Establishes standards for voluntary supplemental long-term care coverage. Outlines procedure for benefits payments for individuals that have supplemental long term care insurance.
• Employer record retention: Employers are required to retain employment records for six years, maintain them at their place of business, and make them available to ESD for inspection at any time. The records must include information necessary for ESD to administer WA Cares Fund premiums, likely including things like hours, wages, any exemption letters, and premiums paid. This new section mirrors the records retention requirements for the Paid Family & Medical Leave program in RCW 50A.20.030.
• Delinquent employer enforcement: Permits ESD to impose notice of assessment on delinquent employers for failing to remit premiums, interest, or penalties. It also outlines such penalties.

The House has introduced its own version of the bill, HB 2272, sponsored by Rep. Nicole Macri (D–Seattle). The House bill makes similar changes to benefits portability, exemptions, and supplemental long-term care insurance. However, it does not include the new employer reporting requirements or delinquent employer enforcement mechanisms included in the Senate bill. HB 2272 has not yet been scheduled for a hearing.

Initiative 2124 is was certified by the Secretary of State and introduced on January 29. It would make the WA Cares Fund into a voluntary program rather than the mandatory program it is now. The initiative is unlikely to be adopted by the legislature and will likely appear on voters’ ballots this fall.