Gov. Inslee signs changes to WA Cares Act into law

Gov. Jay Inslee signed two bills into law Thursday that will make changes to the Washington Long-Term Care Trust Act, just one day after the Senate approved the legislation.

“I’m glad legislators very rapidly made improvements to the bill,” said Inslee.

He acknowledged the concerns about the initial legislation for those who will retire within 10 years or those who live outside the state of Washington but work in-state.

“The legislature fixed those concerns,” he said. “It’s a solid program and we look forward to getting it going.”

The governor also said the program is a “huge step forward for Washingtonians.”

One of the bills will delay the implementation of the program until July 1, 2023. Introduced by Rep. Pat Sullivan, D-Covington, House Bill 1732 passed the Senate on Wednesday with a 46-3 vote. Employees who have already had premiums deducted from their paychecks should expect a refund within 120 days.

“Once again with this program, Washington is leading the way on health care,” said Senate Majority Leader Andy Billig, D-Spokane, during the floor debate. “This is a first in the nation program, we should be proud of that and we are going to be delivering for Washingtonians with this program.

“But with such an important and impactful program, especially one that is so innovative, it makes sense to take the time to get it exactly right,” Billig said.

The other legislation will make changes to the program, including an option to opt-out under certain circumstances.

House Bill 1733, introduced by Rep. Dave Paul, D-Oak Harbor, would allow some disabled veterans, military spouses and temporary workers to opt-out. Individuals who would not be eligible to receive benefits and individuals with their own private coverage also can opt-out under the new legislation.

The bill passed with a 38-11 vote.

The state legislature enacted the program, also known as the Washington Cares Fund, in 2019. The program is meant to serve as a long-term insurance option for Washingtonians and would be used to help pay for medical necessities, including nursing homes or assisted living. The program provides a maximum lifetime benefit up to $36,500. Eligible individuals who are vested can apply for the benefit beginning in 2025.

A payroll tax was supposed to kick in Jan. 1, with Washingtonians seeing a 0.58 percent reduction from their pay checks starting this month.

However, concerns about the implementation of the bill caused the 2022 Legislature to redress the issue. Legislators were concerned about individuals who would have to pay into the program but would never be eligible to receive benefits. Last month the governor announced that the payroll tax would be delayed until April, unless the legislature intervened to set a new date.

Some Republicans have had their doubts about the program since its adoption. House Minority Leader J.T. Wilcox from Yelm criticized Democrats earlier this month for not listening to Republicans’ initial concerns. He said that these new changes could have been avoided if Democrats would have adopted Republicans’ amendments to the original legislation.

Other Republicans have been vocal about the topic as well.

“The math just doesn’t work,” said Senate Minority Leader John Braun, R-Centralia, on Wednesday during floor debates. “We’re all excited about it, but realize it just doesn’t work, the idea has a flaw.”

“At this point … nobody’s made a mistake, it’s all good,” Braun said. “The only mistake … is when you don’t recognize it won’t work. You don’t admit we have to back up, we have to rethink the problem, we have to try another way.”

Braun said there is no disagreement that the state needs some sort of long-term care insurance, but the problems Republicans pointed out three years ago are still there.