Washington Cares Fund goes into effect on July 1. Here’s what to know

Mark your calendars: The Washington Cares Fund goes into effect on July 1, and with it deductions from your paycheck.

The Washington Cares Fund is a long-term care insurance program that will allow beneficiaries to access up to $36,500 in lifetime benefits, adjusted for inflation, for certain services such as professional care, medical equipment, and home safety evaluations. Family members who provide care for loved ones also can be compensated under the program.

All full-time, part-time and temporary workers in Washington state will soon see a slight decrease in their paychecks as the fund goes live.

Federal workers will not pay the tax, nor will employees of Tribal businesses unless the Tribe chooses to opt in to the program. Self-employed workers also must opt-in if they want access to the fund.

Once workers retire, they no longer have to pay into the fund. Currently retired or non-working Washingtonians will not have to pay into the program.

Employees must be at least 18 to access benefits.

The program is going live after it was initially delayed for 18 months, and some Washington State Republicans attempted to have the program removed altogether during the 2023 legislative session.

How does it work?

The benefits are earned and come out of Washington residents’ paychecks during their working years, similar to paying into social security and Medicare.

Those premiums go into a trust fund that earns investment income over time, according to Ben Veghte, director of the Washington Cares Fund. Veghte told reporters during a news conference Thursday that independent actuaries have determined the fund to be fully solvent over a 75-year projection period.

Benefits will first become available on July 1, 2026.

Workers who have contributed for at least 10 years with no breaks longer than five years can access the full benefit, and Veghte said most people will qualify through this particular pathway.

An early access pathway to benefits is also available for employees who contribute for at least three of the past six years at the time when they need care. For example, Veghte said, if an individual has a motorcycle accident five years from now they would have paid in three out of the last six years, making them eligible for the full benefit.

If a worker returns to work after an injury or illness, they resume paying into the fund.

Near-retirees born before 1968 can earn 10% of the full benefit for every year they pay in, Veghte said. If an individual pays in for three years, retires and then needs the benefit 20 years down the road, they would have access to 30% of the lifetime benefit, for example.

Once an individual meets one of those contribution requirements and needs help with at least three daily living activities such as eating, bathing or decision-making, they have access to the benefit.

Veghte said the program is designed to help individuals who need care live in their own homes as long as possible.

How much will I owe?

Washingtonians should expect to pay 0.58% from their paychecks.

Those earning $50,000 a year, for example, can expect to pay approximately $24 per month, adding up to about $290 a year.

Who qualifies for an exemption?

Veghte said that there are four exemptions for certain Washington residents.

• Workers who live out of state but commute to Washington.

• Workers on temporary non-immigrant visas.

• Spouses and domestic partners of active duty military members.

• Veterans with a 70% or more service-connected disability rating.

Veghte said that workers who find themselves in one of those categories can apply for the exemption at the Washington State Employment Security Department, but that individuals should apply as soon as possible before July 1.

More information can be found at wacaresfund.wa.gov.