Long Term Care and the Long Term Services and Support Trust Fund

Table of Contents

LTC Changes as of 2026

  • Out-of-State Participation: Workers who relocate out of Washington may continue coverage if they’ve paid into the program for at least three years.
    • Starting in July 2026 you can continue participating after leaving the state if you have contributed for at least 3 years (500+ hours per year), opt in within 1 year of leaving, and keep contributing during your working years. Starting in July 2030, benefits will be available for out of state participants
  • Opt-in Option for Previously Exempt Workers: Those who opted out with private insurance may rejoin the program before July 1, 2028.
    • For people who had private long-term care insurance before Nov. 1, 2021, and previously had an exemption granted between Oct. 1, 2021, through Dec. 31, 2022, have an opportunity to rescind an approved exemption between Jan. 1, 2026 through June 30, 2028.
  • Supplemental Insurance: A new framework allows private insurers to offer supplemental long-term care policies that complement WA Cares benefits starting in 2027.
  • Simplified Qualification: The requirement for five consecutive years of contributions within a ten-year period is removed.

Vist the WaCares Website for more information and addressing your Exemption updates, if needed.

Employees pay a .58% tax toward the program, and Employers pay 42%.

Did you know?

Did you know 7 out of 10 people will need some kind of long-term care in their lifetime? These services can be a drain on finances, and a burden on family caregivers.

In response to this, in 2019 Washington State Legislature established a long-term care (LTC) benefit for eligible Washingtonians, which will be funded by the Long-Term Services and Support (LTSS) Trust Fund. Employees and Employers started paying into the account in 2023 to fund the future benefit.

Important: Long Term Care and Long Term Disability are different insurance types, and declining Long Term Disability through WSU does not exempt you from the LTC tax.

This benefit will not be administered by WSU; this information is provided as a courtesy. Please visit WA Cares Fund for additional information. Information will continue to be posted as it becomes available.

Long Term Care Details

Funding the Trust

Starting July 2023, a payroll tax began being collected from all Washington state employees and placed into the LTSS Trust to fund future benefits. There is no identified salary cap on which the deduction will be taken.

Eligibility

To qualify for this benefit, individuals must have worked and contributed to the Trust for a specific period of time, need assistance with at least three daily living activities, be at least 18, and a resident of the state of Washington. 

Exemptions

Beginning January 1, 2023, additional groups of Washington workers could/can apply for an exemption from the LTC deductions beginning July 1, 2023. Employees who held a private Long Term Care insurance policy prior to November 2022 were offered a one-time exemption opportunity to permanently opt out of WA Cares Fund; this exemption path is no longer offered.

If you receive an approved exemption, send your exemption letter to payroll.services@wsu.edu.

Opt-in Option for Previously Exempt Workers

If you previously exercised an exemption to do being in a private insurance, your may rejoin the program between Jan. 1, 2026 and June 30, 2028.

Long Term Care Benefit

Starting as early as July 2026, a lifetime $36,500 benefit will be available to address a wide range of long-term services and support. For those opting back into the program, the benefit could start as soon as July 2030.

Frequently Asked Questions

Those who applied for and received an exemption due to holding private LTC insurance prior to November 1, 2021 will be given the option to opt back into WACares starting in 2026 through June 30, 2028. Specific information can be sought from WACares at WA wacaresfund.

Those who applied for and received an exemption due to holding private LTC insurance prior to November 1, 2021 currently will not be required to provide ongoing proof, as this is a permanent exemption, at least as identified by the state at this time. The new exemptions available January 1, 2023, are not permanent and may require re-certifying over time.

Send a copy of your exemption approval letter to payroll.services@wsu.edu. This will notify Payroll to not collect the LTC tax from your pay.

No, the current program requirements state that only those who reside in the state of Washington will be eligible for a benefit. If you live out-of-state you may wish to apply for an exemption, or you may contribute to the program and become eligible to receive a benefit should you relocate to Washington in the future. Legislative consideration is being considered to allow those who reside outside of WA to be eligible for a future benefit.

Instructions to submit an exemption can be found at WA Cares Fund: Apply for an Exemption.

No.

No. LTD is a wage insurance plan that will ensure a certain level of monthly income if you are on an approved LTD claim due to being medically unable to work. LTC provides a benefit to cover services and assistance to address various activities of daily living.

No, future LTC benefit payouts will be non-taxable. LTC premiums are collected from your pay post-tax, so taxes will not be collected from future payouts.

  • If an employee has at least ten years of paying the tax starting July 1, 2023, with no more than a five year break in Washington state employment, they will be considered to be permanently vested/eligible for future benefits.
  • If at the time of applying for a benefit an employee has paid in for at least three of the previous six years, they will meet the temporary vesting/eligibility criteria and be eligible for a benefit.

At this time the benefit appears to only be available to individuals who have paid the tax for the allotted period of time to establish eligibility.

Contact WA Cares Fund

  • General Questions: (844) 227-3492
  • Exemption Questions: (833) 717- 2273, option 3

Links and Resources

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