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Efforts to repeal a long-term care tax set to take effect in January in Washington state are gaining traction after a series of bills were pre-filed by state legislators.
Washington state Sen. Mark Schoesler (R-Ritzille) and Rep. Peter Abbarno (R-Centralia) pre-filed bills in the state Senate and House to repeal the Evergreen State’s law creating a long-term care program and instituting a payroll tax; one proposed bill calls for investigating other potential solutions through private insurers.
Gov. Jay Inslee said he may support delaying the new tax, but state lawmakers are seeking a total repeal of it, and 62% of Washington voters in 2019 called for the repeal of the program.
As McKnight’s Senior Living previously reported, under the program, all adult workers contribute to a trust, which will pay for “a comprehensive array of long-term care services and supports,” including assisted living communities, skilled nursing facilities, in-home care and expenses such as meal delivery or construction of wheelchair ramps. Starting in 2025, the program will allow vested state residents to claim up to $36,500 to help cover these expenses.
A monthly mandatory payroll tax of 58 cents on every $100 in income is scheduled to go into effect in 2022, with benefits first payable in 2025. For someone with annual wages of $100,000, premiums would total $580 per year.
Abbarno pre-filed a series of bills to repeal the WA Cares Fund — House Bill 1594 would repeal much of the legislation, House Bill 1596 would expand the eligible beneficiary pool to include those who later move out of state, House Bill 1598 would allow benefits to be paid out to a beneficiary or an estate or back to the state following the death of a qualified individual, and House Bills 1599 and 1597 both would exempt from payroll premium assessments employees who are undergoing hardship or recently graduated from high school or college.
Schoesler pre-filed Senate Bill 5503, which would authorize a joint legislative committee to study the financial products available through the private market to replace the WA Cares Act program.
“It’s easy to see why this new long-term care tax is so unpopular,” Schoesler said in a statement. “First of all, many workers won’t be able to afford it — people earning an average wage will lose hundreds from their paychecks each year. Too many people would pay the tax, yet never receive benefits.”
Opponents of the mandatory payroll tax filed a class action suit last month in federal court, seeking a declaration that the WA Cares Act runs afoul of the federal Employee Retirement Income Security Act of 1974.
