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Washington is the first state to pass a long term care payroll tax statewide and California and New York are next.
If you live in these two states, it’s time to learn a few things about the current long term care act in Washington state.
1. Tax will be mandatory and withdrawn from employee payroll. Employer contributions are not required.
2. The amount of the benefit will be limited and there may be a vesting period before eligibility to receive benefit. For instance, the max benefit in Washington is $36,500 and the vesting period is 10 years.
3. Opt-out option will be available to those who have private long term care insurance. If you do not opt out in time, you might be locked in with the state governments program.
While the long term care act is a great benefit, the reality is that long term care is expensive and the costs can far exceed the maximum benefit amount. And, in addition to the limited benefit amount, the state can implement certain restrictions such as requiring certain nursing home care providers.
But the best way to know that you’re getting the best value for your money is to shop around and compare.
There are many great benefits with purchasing private long term care insurance. One great feature is that you have the power to choose the amount of coverage that’s best for you and your family. You’ll also have the ability to select sufficient coverage, which can be greater than the max benefit currently implemented in Washington state, and you have the option to choose whoever you want as a care provider.
The good news for those who live in California and New York is that there’s still time to shop for private long term care insurance. And for those who live in the 11 states that are currently considering implementing a similar state tax, this could be a great time to start doing your homework.
To find out more about Long Term Care coverage, set up your appointment today!