Quote: “The state of Washington recently passed the Washington Cares Fund with the intention of creating a limited benefit for long term care services. W2 employees will be directly impacted through a new payroll tax that takes effect on January 1, 2022. The state has allowed for an opt-out provision for employees who can attest to having an LTCi policy in force prior to November 1, 2021. … We believe it’s very important to approach LTC planning in a responsible manner with the primary objective of protecting a family’s estate and legacy. It is not to be used for payroll tax avoidance, which could negatively impact consumers, your business, NGL and the LTCi industry. … With your help we can ensure that purposeful LTC planning remains top priority. Effective immediately, NGL is instituting new policy minimum benefits, underwriting requirements and administrative changes in Washington State only. To provide coverage similar to the benefits available through the Washington Cares Fund: • The minimum Daily Benefit Amount available is $100. Applications with $50 – $90 Daily Benefit Amounts will not be accepted. • The applicant must choose an inflation option. Applications with no inflation will not be accepted. • Facility only applications will not be accepted.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
One problem with government mandating compulsory payroll funded social insurance is that it constricts freedom of choice. It prevents consumers from buying what they need and want. The Washington Cares Fund left citizens an escape hatch, a temporary opt-out option. Should private LTCI companies close that escape hatch?
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