The passage of HB 1087 during the 2019 session established the Long-Term Services and Supports Trust Program. The purpose of the program is to provide a long-term service and supports benefit to Washington workers that otherwise would
not have coverage.
Premium collection and benefits
Beginning on January 1, 2022, employers must start collecting premiums for the new Long-Term Services and Supports Trust Program. Premiums will be paid entirely by employees through a .58% payroll tax remitted to the Employment Security Department (ESD).
ESD is using the Paid Family and Medical Leave Program as a model to establish the Long-Term Services and Support Trust Program’s collection and reporting process.
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. The maximum lifetime benefit is $36,500 per person, with future increases tied to the consumer price index.
What’s happening now
Recently, the Muzzal Amendment to HB 1323 was passed, extending the date a person has to purchase long-term care insurance in order to opt out of the state long-term coverage. Employees who attest that they have long-term care insurance
purchased before November 1, 2021 may apply for an exemption from the premium assessment. An employee can apply for an exemption from October 1, 2021 through December 1, 2022. An exempt employee is then permanently ineligible
for the state program.
Possible Trust option?
On April 30 the Board of Trustees met, exploring possible long-term care insurance options that the AWC Trust may be able to offer membership, that would qualify as opt-out coverage. These options include group permanent life insurance with a long
term-care rider, and individual (non-group) long-term care coverage.
Permanent life with long-term care rider
Benefits include a total death benefit as well as a long-term care benefit. Cost is based on age and level of benefits. There is no underwriting, meaning all employees are eligible for coverage.
Individual long-term care coverage
In lieu of a formal employer sponsored plan, individual coverage via a self-serve website portal may be available to employees. Any plans available would be subject to full underwriting, meaning there is a rigorous process for the employee to provide
medical information, and not all employees applying for coverage would qualify.
Trust-sponsored long-term care coverage
The Trust is currently working with our broker/consultant to identify a group long-term care provider, and the parameters of coverage. Trust staff will continue to keep employers updated on any long-term care options that may become available through
the Trust, as well as additional information needed to provide a quote.