Best Long-Term Care Insurance Washington
OneAmerica
OneAmerica offers asset-based long-term care insurance in the form of hybrid LTC policies. The insurance combines an annuity or life insurance with long-term care benefits. If you don't use the LTC benefit, you can leave a tax-free death benefit to survivors.
National Guardian Life
National Guardian Life’s EssentialLTC long-term care insurance is designed with a long list of benefits and riders, including joint policies and premiums, return of premium and flexible payment options. AM Best gives NGL an A rating for financial strength and ability to meet policyholder obligations.
Lincoln Financial
Lincoln Financial offers long-term care options, including a hybrid long-term care insurance policy. A Lincoln Financial hybrid policy ensures a death benefit for your heirs and tax-free long-term care reimbursement.
Nationwide Long-term Care
Nationwide offers long-term care options, including an add-on to an existing life insurance policy. Nationwide long-term care insurance ensures your family is taken care of with benefits paid in cash.
OneAmerica
OneAmerica offers asset-based long-term care insurance in the form of hybrid LTC policies. The insurance combines an annuity or life insurance with long-term care benefits. If you don't use the LTC benefit, you can leave a tax-free death benefit to survivors.
LTC Consumer
LTC Consumer is an online long-term care resource that matches consumers with providers best suited for the situation of the customer. LTC Consumer works with many of the top national long-term care insurance providers to ensure you are adequately covered.
National Guardian Life
National Guardian Life’s EssentialLTC long-term care insurance is designed with a long list of benefits and riders, including joint policies and premiums, return of premium and flexible payment options. AM Best gives NGL an A rating for financial strength and ability to meet policyholder obligations.
Lincoln Financial
Lincoln Financial offers long-term care options, including a hybrid long-term care insurance policy. A Lincoln Financial hybrid policy ensures a death benefit for your heirs and tax-free long-term care reimbursement.
Nationwide Long-term Care
Nationwide offers long-term care options, including an add-on to an existing life insurance policy. Nationwide long-term care insurance ensures your family is taken care of with benefits paid in cash.
Mutual of Omaha
Mutual of Omaha is one of the top long-term care insurance providers in the United States. You can tailor a Mutual of Omaha long-term care insurance policy using a mix of built-in benefits and optional benefit riders. Policy discounts include 15% to 30% savings.
Transamerica
GoldenCare
Washington Long-term Care Insurance
Washington is the first state in the nation to create a state-run long-term care insurance program. Employees contribute to the WA Cares Fund through a small payroll tax in exchange for long-term care benefits should they need them.
Washington’s long-term care plan is not the best choice or even an option for all citizens. We created this guide to explain long-term care insurance in Washington and help you decide if you should participate in the program.
We evaluated long-term care insurance companies to provide private insurance alternatives to the WA Cares program. We chose companies based on how transparent they are with information, the flexibility of plans, customer feedback and other factors.
Our choices for the best long-term care insurance companies are National Guardian Life, Nationwide, OneAmerica, and Lincoln Financial Group.
Top Tips:
- Washington’s long-term care insurance plan is not ideal for everyone, so consider private insurance as well.
- You can opt out of the WA Cares plan, but you can’t re-enroll.
- Benefits only pay for care received in Washington state.
Tips for Buying Long-Term Care Insurance in Washington
You will likely need some type of care as you age, whether it’s home health care or another senior care arrangement. Long-term care insurance reduces the strain on your retirement savings while helping to ensure you receive the right level of care. Washington’s WA Cares Fund is one solution for the state’s aging population.
The state of Washington expects a 174% growth in residents over age 80 by the year 2040. In response, Gov. Jay Inslee signed the Long-Term Services and Supports (LTSS) Trust Act into law in 2019. The WA Cares Fund works hand in hand with that law to help older adults afford long-term care. At the same time, the state’s Medicaid costs will be easier to manage as the population ages.
Who Pays for Washington’s Long-Term Care Program?
WA Cares benefits are entirely funded by payroll taxes. You must contribute to the fund to qualify for up to $36,500 (adjusted for inflation in the future) in long-term care benefits. The tax goes into place on Jan. 1, 2022, and amounts to 58 cents for every $100 earned.
You will receive WA Cares benefits if you work and contribute to the fund in one of two ways:
- Stay employed for at least 10 years without a break of five or more years within that decade.
- Work a minimum of 500 hours per year during at least three of the last six years by the time you apply for the program.
The tax rate may change beginning Jan. 1, 2024, and will be evaluated every two years after that to ensure the program stays solvent. The current 0.58% tax amounts to $302 per year based on the Washington average annual earnings of $52,075.
If you retire before working long enough for Washington’s LTC benefits, consider buying a long-term care policy.
If you plan to retire soon and won’t qualify for state benefits, you still pay the payroll tax. You can apply for an exemption from the tax if you have a private long-term care policy.
Washington State Long-Term Care Benefits
Washington state will pay for long-term care services and support for eligible taxpayers beginning January 2025. The maximum benefit is $36,500 and will be adjusted for inflation in the years to come.
The WA Cares Fund will pay for these long-term care needs:
- Professional in-home care or training and support for paid and unpaid family members who provide your care at home.
- Fees for an assisted living facility, adult family home or a nursing home.
- Adaptive equipment and technology such as hearing devices, medical alert systems and other devices that allow for aging in place.
- Home modifications such as wheelchair ramps.
- Home-delivered meals, transportation and home safety evaluations.
- Dementia support, memory care and care transition coordination.
- Education and consultations, and respite care for family caregivers.
You may need a higher benefit than WA Cares offers if you expect to have extensive long-term care needs.
If you expect your long-term care needs to cost significantly more than the WA Cares Fund pays for, consider buying a private policy. You can receive state and private benefits or file for an exemption from the state tax.
| Washington Long-Term Care Insurance vs. Private Insurance | ||
| Feature | WA Cares Fund | Private LTC |
| Optional death benefit | No | Yes |
| Out-of-state coverage | No | Yes |
| Add partners to policy | No | Yes |
| Guaranteed acceptance | Yes | No |
| Percentage-of-wage premiums | Yes | No |
| Return of premium option | No | Yes |
Exemptions and Important Dates for the WA Cares Trust Program
You can use an exemption to avoid paying the payroll tax that funds the Washington state long-term care plan. You will not be eligible for WA Cares benefits if you are granted an exemption.
You can apply to the Employment Security Department (ESD) for an individual premium exemption if you already have long-term care insurance. Exemptions are permanent, with no way to re-enroll in the WA Cares Fund, even if you change jobs.
| Important WA Cares Dates for Washington Residents | |
| ESD accepts exemption applications | Oct. 1, 2021 – Dec. 31, 2022 |
| Deadline for having private long-term care insurance to qualify for an exemption | Oct. 31, 2021 |
| Employees begin paying premiums, and self-employed can opt-in to coverage | Jan. 1, 2022 |
| Benefits available | Jan. 1, 2025 |
Once you are exempt from the WA Cares Fund premiums, you can never participate in the program again.
If your exemption is approved, your payroll deductions for WE Cares will stop the next quarter, so you may pay some premiums without participating in the benefits. Keep your exemption approval letter in a safe place. You’ll need to show it to your current and future employers. Without proof of exemption, WA Cares premiums get deducted from your paycheck and are not refundable.
Is Washington’s Long-Term Care Program Right for You?
The WA Cares Fund is a good deal for those who anticipate earning lower wages. Because the tax is based on a percentage of income, lower earnings mean you pay less for coverage. Washington’s solution to long-term care cost assistance can benefit individuals who can’t afford to pay for private insurance.
Washington residents in poor health can benefit from the state program as well. This segment of the population may be priced out of private long-term care insurance due to preexisting conditions. Washington’s LTC insurance program is available to all who pay into the WA Cares Fund regardless of health status.
If you are likely moving out of the state when you retire, with no plans to return, do not look to Washington for long-term care benefits. Even if you pay into the WA Care Fund, you can only access benefits as a resident receiving in-state care.
If you earn a comfortable living, we recommend getting some long-term care insurance quotes. There is no salary cap on the 0.58% payroll tax, and the tax end date is when you retire. You can probably find equal or better coverage for the cost. Consider contacting one of our top long-term care insurance providers to discuss your options.
Only those who pay into the fund via payroll tax deduction over a number of years will receive benefits, leaving the unemployed to seek other options for defraying long-term care costs.
Frequently Asked Questions
Will my employer match funds for the WA Cares tax?
No, Washington’s long-term care insurance program is funded by a state employment tax. Employees pay into the fund via payroll deduction, and there is no matching option from employers.
Can I own private long-term care insurance and participate in the WA Cares Trust plan?
Yes, and it may be ideal for you to have both types of LTC coverage. Washington’s state program is affordable but requires you to need assistance with a minimum of three activities of daily living (ADLs). Most private insurance benefits become payable with a minimum of two ADLs.
Does Washington state refund premiums paid if I become exempt from the WA Cares Fund program?
No, if you receive an exemption, you won’t pay the tax in the future, but the state retains taxes previously withheld from earnings.
Can remote workers in Washington participate in the state long-term care insurance?
If your employer is based in Washington, you will pay into the WA Cares Fund whether you work from home or at the company’s offices. If you work from a Washington address while employed by a company headquartered in another state, you won’t be taxed or eligible for long-term care benefits through the fund. If you live in Washington and work as a self-employed contractor, you can opt into the program.
Can I receive WA Cares benefits if I move outside of Washington state?
Washington’s long-term care benefits are not portable. The state pays your LTC expenses only if you receive in-state care.
Conclusion
Washington state is providing the first social long-term care insurance program in the country. Washington’s WA Cares Fund could become a blueprint for a federal program called the Well-Being Insurance for Seniors to be at Home (WISH) Act. The WISH Act was introduced in Congress in July 2021.
While many Washington residents stand to benefit from the WA Cares program, it’s not the best option for everyone. Higher-income earners may find a better rate on private long-term care insurance. Read our long-term care insurance buyers guide if you need more details about how these plans work.
