Washington State Long-Term Care Act
Planning for your future means planning for your financial health.
As we get older, many of us will face health issues that may require the daily assistance of a trained professional. It makes good sense to do what we can now to prepare for that possibility in the future.
Starting next January 1st, 2022, every W-2 taxpayer in Washington will begin to pay 0.58% of wages ($0.58 per each $100 earned) into a brand new payroll tax intended to support a Trust for long-term care for its citizens. However, when compared to projected costs for such care, the benefits this Trust will pay out to patients are not likely to cover the cost of even a short few weeks spent recovering from an illness or injury, much less provide security for those suffering from chronic illnesses or other health issues requiring a longer or ongoing relationship with a healthcare provider. Benefit up to $100 a day with a maximum lifetime benefit of $36,500.
In addition, the new Washington State Long-Term Care Act includes a number of details that may affect those wishing to claim benefits, including:
- All claimants must work a minimum of 500-hrs/yr who pay premiums for at least 10 years (without a break of 5 consecutive years) or who pay premiums for 3 of the last 6 years.
- Your benefits may be constrained: "a service or supply may be limited by dollar amount, duration, or number of visits".
- People who are currently retired may not pay premiums or qualify for benefits.
- Adults and children who have become disabled prior to age 18 may not participate.
- Claimants who have left the state for five or more years and who are living elsewhere are not eligible for any benefits they may have paid into while living in Washington.
The truth is, long-term care assistance might not be the best solution for your needs.
Under the current law, you have one opportunity to opt out of this tax by having a long-term care insurance (LTCi) policy in place by November 1st, 2021. Washington State will allow residents to opt out of the Long-Term Care program, provided they can show proof that they are enrolled in another program. TwinStar Financial Advisors can offer a solution that allows you to retain control of your investment, and offers you more options for both short and long-term care: a Long-Term Care coverage plan with options that put your money where it belongs - in your future.
Talk with us. We can help.
Some standard restrictions may apply. Call TwinStar Financial Advisors* toll-free at 800.267.4363 or Visit TwinStarFinancialAdvisors.com to learn more about our products and services. Together we can work out the right plan for your situation and needs.
Investments: • Are not FDIC/NCUSIF insured • May lose value • Are not financial institution guaranteed • Are not a deposit • Are not insured by any federal government agency.
1020 E 5th Avenue, Olympia, WA 98501 (800)-258-31115