Public feedback on the Long-Term Care Act

Here’s what our constituents are saying about the Democrats’ new payroll tax called the Long-Term Care Act:

“It is so bad for those under 30 that an Insurance Agent urged me to seek media attention to bring light to the issue.”

“This law is so contrived and ridiculous that it feels like a scam.”

“Please repeal this poorly written and executed program. The income tax is both regressive and oppressive. I will end up paying more than I could every recoup with this ‘mandatory’ buying of long-term care insurance. Private insurance companies immediately raised rates for Washington State residents, and at least they allow program to continue if you move out of state. The State funded program needs to be abolished, along with the forced tax for a service that most will never need. No taxation without representation.”

“I have recently found through my employer that starting soon, I will be paying additional payroll tax to the State of WA for the Care Fund. While this is a great endeavor, I do not feel it is fair to make this mandatory through payroll deduction. I am 63 years old and I will be retiring in May 2024. I have made plans to move to Texas where I have close family members when I retire. The fact I won’t be living in Washington once I retire, should exempt me from having to pay for a Fund that I will not benefit from. I am in good health, have no pre-existing conditions, live a healthy lifestyle and I don’t see that changing in the next 3 years. I really don’t want to have to pay more of my hard earned money to go into a fund I will not use. The fact that the Legislature decided this to be mandatory with no out for people who have no intention of retiring here is not fair to those of us who have already made plans to retire to another state.”

“I’m writing on behalf of my husband and myself in regards to the upcoming LTC tax. I am 57 and my husband is 62. We will not be eligible with this new legislation to draw benefits but we will be paying the tax none the less. That is unless we purchase a plan on our own and opt out of the tax. Within the last two weeks we have been in contact with financial planners to try to construct a feasible option for opting out. The insurance providers are pulling out of WA state in droves. I got word today that, “John Hancock just announced that they are increasing their minimum policy to 250k. They are joined by many carriers who are beginning to pull their products or increase the minimums in light of the surge of demand.” This tax flew under the radar for most of us due to the pandemic. Now it is creating chaos in the insurance industry leaving folks like my husband and myself hanging out to dry. This legislation needs to be re-evaluated now.”

“Why is an LTC tax being imposed that was never voted upon?

  1. Higher wage earners will realize there is no income cap to the tax and will either already have LTC insurance or purchase a policy.
  2. Anyone earning over $150,000 annually can likely afford a better (higher daily limit/higher total benefit) policy for slightly more….it’s just more affordable.
  3. It’s likely that this fund will be grossly underfunded and a future rate increase will be passed.  This will obviously make it less affordable.
  4. Additional loss in tax due to middle and higher wage earners obtaining exemptions will further burden the trust and result in even greater tax increases that will target the demographic it’s trying to protect….low to middle wage earners and those who cannot otherwise afford or obtain LTC coverage.”