By Ann Vining, NoHLA Staff Attorney

Policymakers in Washington State have worked for several years to develop an affordable way for state residents to pay for coverage of long-term services and supports (LTSS) – coverage that offers an alternative to Medicaid.

The majority of people over sixty-five years of age will need LTSS within their lifetimes, and this population is expected to double by 2040. Yet Medicare and other insurance programs do not cover these services, and private LTSS insurance is costly and covers only about 10% of the population. An earlier legislative-directed analysis considered and rejected a public-private reinsurance model. House Bill 1087 and its companion, Senate Bill 5331, would create a public benefit funded through a payroll tax.

This bill would establish a Long-Term Services and Supports program, a Trust to hold the funds, and a Commission to direct it. Starting in 2022, employees in Washington working at least 10 percent of full-time would be assessed a premium of .58% of their wages. In 2023, self-employed people could opt to participate. The benefit is a total of $36,500 to be used to pay vendors directly for covered services. To receive benefits, an adult must pay into the fund during 3 of the last 6 years, or 10 years total without more than five consecutive years off, and must need help with three Adult Daily Living tasks. A qualified spouse or registered domestic partner can be paid to provide services.

NoHLA supports this program. It would offer some relief to family caregivers who are now unpaid, allow people flexibility and access to financial help without becoming impoverished, and save substantial Medicaid funds in the future.

NOTE: For latest news on the 2019 Legislative Session, see NoHLA’s Legislative Update page and click on the most recent update.