Title
Approval of a Resolution Opposing Initiative No. 2124, Amending State Law to Provide that Employees and Self-Employed People Must Elect to Keep Long-term Care Coverage Under RCW 50B.04 and Could Opt-Out Any Time and to Repeal Current Law Governing Exemptions for Employees Who Had Purchased Long-term Care Insurance Before November 1, 2021
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Accept testimony from everyone who wishes to speak for or against the Initiative Measure No. 2124.
Motion if Council wishes to oppose the Initiative: Move to Adopt the Resolution Expressing City Council Opposition to Initiative No. 2124, Amending State Law to Provide that Employees and Self-Employed People Must Elect to Keep Long-term Care Coverage Under RCW 50B.04 and Could Opt-Out Any Time and to Repeal Current Law Governing Exemptions for Employees Who Had Purchased Long-term Care Insurance Before November 1, 2021.
No action is needed if Council does not wish to adopt the Resolution.
Report
Issue:
Whether to oppose Initiative No. 2124 to Washington’s voters that would amend state law to provide that employees and self-employed people must elect to keep long-term care coverage under RCW 50B.04 and could opt-out any time and repeal current law governing exemptions for employees who had purchased long-term care insurance before November 1, 2021.
Staff Contact:
Debbie Sullivan, Assistant City Manager, CMO, 360.753.8499
Presenter(s):
Debbie Sullivan, Assistant City Manager
Background and Analysis:
In 2019, the Washington Legislature created a public long-term care insurance program that is commonly known as “WA Cares.” The program provides people who meet its requirements up to $36,500 (plus increases based on inflation) to pay for certain long-term care services, such as nursing home care.
The insurance program is funded through mandatory contributions from most employees in Washington. Employers must deduct 0.58 percent of an employee’s wages. Participation is mandatory for most employees whether they are full-time, part-time, or temporary workers. Payroll deductions began on July 1, 2023.
Some employees in Washington do not contribute to the long-term care insurance program and are not eligible for the program’s benefit. In general, federal employees, employees of federally recognized tribes, and persons who are self-employed do not participate in the long-term care insurance program. However, federally recognized tribes and persons who are self-employed may choose to participate.
Certain employees may apply for voluntary exemptions from participation in the program. Employees who may apply for voluntary exemptions include veterans with service-connected disabilities, spouses or registered domestic partners of active-duty military members, temporary workers on a non-immigrant visa, and, under recent changes to the law, workers whose permanent address is outside Washington. In addition, employees who obtained private long-term care insurance before November 2021 were eligible to apply for an exemption until December 2022.
Participants must contribute to the long-term care insurance program for a minimum number of years before they are eligible to apply for benefits. In general, participants must contribute for either (1) at least ten years, without a gap of five or more consecutive years, or (2) for three of the last six years before the date a person applies for benefits. A person born before 1968 may receive partial benefits based on the number of years they have contributed to the program.
The long-term care insurance benefit is available only to individuals who need assistance with at least three activities of daily living, such as eating, getting in or out of bed, dressing, taking medications, or bathing. In addition, a person is eligible for the benefit only if they are at least 18 years old. For Washington residents, benefits first become available on July 1, 2026.
If adopted, Initiative Measure No. 2124 (I-2124) would change how participation in the long-term care insurance program works. Employees and self-employed persons who are currently participating in the program would be able to opt out at any time. A person who opts out would not contribute premiums to the program and would not be eligible for the $36,500 benefit.
I-2124 would also require that employees or self-employed persons in Washington elect to keep coverage under the program.
This measure does not specify the timing or process for employees or self-employed persons to either “elect to keep coverage” or opt out of the program. I-2124 would give the Employment Security Department authority to adopt rules to implement the measure’s requirements.
I-2124 would also repeal the statute that created a voluntary exemption for employees who had purchased long-term care insurance before November 2021.
Climate Analysis:
Initiative No. 2124 does not impact the environment.
Equity Analysis:
If approved by voters, Initiative No. 2124 would change how participation in the long-term care insurance program works. Employees and self-employed persons who are currently participating in the program would be able to opt out at any time. A person who opts out would not contribute premiums to the program and would not be eligible for the $36,500 benefit.
Neighborhood/Community Interests (if known):
Not known.
Financial Impact:
None.
Options:
1. Approve the Resolution opposing Initiative No. 2124 that would amend state law establishing a state long-term care insurance program and repeal a current law governing exemptions for employees who had purchased long-term care insurance before November 1, 2021.
2. Modify the wording of the Resolution.
3. Don’t approve the Resolution opposing Initiative No. 2124 that would amend state law establishing a state long-term care insurance program and repeal a current law governing exemptions for employees who had purchased long-term care insurance before November 1, 2021.
Attachments:
Resolution