The State of Washington is poised to enact a new tax to fund a nominal long-term care insurance benefit according to the American Association for Long-Term Care Insurance (AALTCI).

"The Long-Term Care Trust Act has passed the House by a 63-33 vote," explains Jesse Slome, director of AALTCI, sharing information on a call with insurance specialists today.  "If the bill becomes law, Washington workers will pay into a trust making them eligible for benefits."

Under the bill, starting in 2022 a tax of 0.58 percent will be assessed to most full-time workers in Washington.  Workers who pay in for either three years within the last six, or for a total of 10 years including five interrupted years, become qualified for benefits.  "Ultimately the benefit could total $36,500 - thought this amount could increase by three percent if approved by the program," Slome acknowledges.

"The new program will be a boon for the State's providers of homecare services because now they'll have a steady and secure source of payments," Slome noted.  "It'll be good for older citizens who will pay in for just a few years and can quickly become eligible.  Younger people who'll pay roughly $300 yearly for every $50,000 of income and will pay for many, many years will be funding the care for older residents I suppose."

In terms of the impact on long-term care insurance, Slome notes he's heard little if any reaction from the nation's long-term care insurers or insurance agents who market long-term care insurance solutions.    "There was far greater chatter when the CLASS Act was proposed as part of the Affordable Care Act.  That said, it will be interesting to see if programs like this are adopted by other states," he shared with the agents.

"There's great incentive to implement programs like this," Slome notes.  "First, as I said, home care companies and providers benefit from a secure source of payment for their services, and there is also some benefit to State Medicaid programs.  But, the benefits available to consumers are really minimal, so there will always be a marketplace for those who want protection against costs that will exceed the benefit level of $36,500."

"Women are likely to need long-term care for a variety of reasons that generally result from living longer lives as well as conditions like dementia and Alzheimer's disease," Slome notes.  "This has been similar in prior studies and is one of the reasons women now pay more for long-term care insurance than men - they need this protection and benefit greatly from having it."

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning and helps consumers connect with knowledgeable professionals who are independent advisors.   Consumers looking for local long-term care insurance cost comparisons should visit the Association's website at www.aaltci.org or can call the organization's national headquarters at 818-597-3227.