As more people near the age of retirement, leaders of Washington’s long-term insurance care program, known as WA Cares, want to prepare families for the financial and emotional impact of that transition.
“We’ve known for decades that the age wave is there, because it’s a product of the baby boom,” said Ben Veghte, WA Cares Fund director. “Why would we not prepare for it? Why would we wait until families are devastated?”
All full-time, part-time and temporary workers in Washington contribute to the WA Cares Fund, which they can access once they need care. But an initiative on November’s ballot seeks to make the program optional — a move insurance experts say would effectively bankrupt it.
On Monday, Veghte spoke about the fund’s model and dismissed claims about the program’s solvency challenges. He’s in town to speak at the 2024 Mini McGinty Conference on Alzheimer’s and Aging, which will be hosted by the Alzheimer’s Association in Vancouver Tuesday.
“Our society is going to look fundamentally different in 10 years. Long-term care already affects families in significant ways, and twice as many are going to be affected going forward,” Veghte said. “If all of us are going to have a foundation of dignity and security in retirement, we need programs like Social Security, Medicare and WA Cares.”
What is WA Cares?
WA Cares is a one-time benefit starting at $36,500, adjusted over time with inflation. Workers can access their lifetime benefit once they’ve paid into the program for 10 years, or less if they have a sudden need.
The fund applies a 0.58 percent tax on workers’ paychecks, meaning an employee earning around $50,000 a year would pay $291 per year toward the fund. Deductions from paychecks began July 1, 2023. Benefits will become available in July 2026.
Since its implementation, the fund has collected $1.3 billion, Veghte said.
The money can be used to pay for long-term care expenses, such as caretaking, home modifications, incontinence supplies, equipment and meals for people who are older, injured or disabled. The money could also be used to pay a family caregiver.
The number of Americans ages 65 and older is projected to increase from 58 million in 2022 to 82 million by 2050 — a 47 percent increase.
Veghte said 70 percent of Washingtonians will need long-term care at some point in their life, but many don’t have a way to pay for it. The average median household income for seniors in Washington is $56,000 annually.
But the cost of senior care has risen by 11 percent in just the last year. Only 14 percent of Americans over 75 can afford a regular home health visit and even fewer — 13 percent — can afford a nursing home, according to the National Low Income Housing Association.
The WA Cares Fund can provide that extra sense of security as many residents near the age of retirement, he said.
Multiple state agencies had a role in implementing the WA Cares Fund, which is led by the Department of Social and Health Services, including the Employment Security Department, the Washington State Health Care Authority and the Washington State Office of State Actuary.
The WA Cares Fund is overseen by the Long-Term Services and Supports Trust Commission and the Washington State Investment Board.
Veghte said WA Cares has made revisions to the program since it began based on feedback from residents. Going forward, the LTSS Trust Commission will continue to monitor and improve the program by creating more accommodations and expanding options for residents, he said.
Initiative 2124
In July, hundreds of family caregivers, advocates and nurses across the state launched a campaign to defeat ballot Initiative 2124, which would allow Washington employees to opt out of paying the payroll tax and receiving benefits under the WA Cares Fund.
Representatives from Let’s Go Washington did not respond to The Columbian’s request for comment by press time.
There are more than 820,000 family caregivers in Washington, according to the Washington State Department of Social and Health services. Many of them say the WA Cares Fund is crucial for relieving that financial burden.
“A large number of Washingtonians are going to have dignity and stay in their homes with WA Cares,” Veghte said. “It’s already hard psychologically and physically, why make it an economic devastation?
