A New Option for Long-Term Care Costs: Washington's WA Cares Program
Washington state's WA Cares program, a mandatory surcharge on payroll taxes, is generating interest and debate as a potential solution to the long-term care crisis. This program, which began distributing benefits in July, aims to provide financial security for individuals facing long-term care needs. While it may not cover all expenses, it offers a modest yet valuable safety net for older adults and people with disabilities.
A Mandatory Surcharge for a Necessary Benefit
Kelly Haggett, a 67-year-old systems administrator, views the surcharge as a small price to pay for the peace of mind it provides. She acknowledges that the program can't cover all her potential long-term care costs, but the $18,250 benefit is still significant. Haggett's experience highlights the program's potential to alleviate financial burdens for those who need it most.
The WA Cares program is a result of a decade-long effort, surviving two statewide votes aimed at overturning or weakening it. It's a unique approach, as it's the nation's first state-operated program for long-term care insurance. By mandating a surcharge, Washington is taking a proactive step to address a critical issue.
Addressing a Hidden Health Risk
Long-term care is a significant yet often overlooked health risk. An estimated 70% of Americans will need it at some point, but many haven't planned or saved for it. The misconception that Medicare will cover long-term care is widespread, but in reality, it rarely does. Medicaid, while covering long-term care, has strict income and asset limits, leaving most middle-class people out. This leaves individuals and families vulnerable to financial ruin.
Previous attempts to establish public long-term care protections, like the CLASS Act, have faced challenges. The private market has also contracted, with major insurers exiting due to declining returns on investments. As a result, fewer than 35,000 Americans bought stand-alone policies in 2024, compared to 235,000 in 2010. This highlights the growing need for innovative solutions.
A Multifaceted Approach
The WA Cares program is just one of several proposals to address the long-term care crisis. Senators Wyden and colleagues have proposed a 'home care guarantee' for Medicare beneficiaries, while a Brookings report suggests subsidized long-term care at home through Medicare. In the House, Reps. Suozzi and Moolenaar have introduced a catastrophic-insurance program for older people with disabilities.
Despite the political challenges, other states are taking note of Washington's initiative. Legislators in Illinois, Hawaii, and West Virginia have introduced bills, and task forces are studying the issue. The urgency of the situation is evident, with long-term care being a topic of conversation around every dinner table.
A Necessary Evil?
Steven Russakoff, who provided support for his parents during their elder care journey, initially disliked WA Cares due to its portability issues. However, after amendments made it portable, he became a convert. Russakoff's experience highlights the program's potential to provide peace of mind and financial security, even if it's not a perfect solution.
The WA Cares program is a step in the right direction, offering a safety net for those facing long-term care challenges. While it may not be a panacea, it's a necessary evil in a system that often leaves individuals and families vulnerable. As Washington leads the way, other states will likely follow, sparking a much-needed conversation about long-term care solutions.
