Washington voters will determine the future of the state’s innovative public long-term care insurance program in a referendum this Autumn.
If Initiative 2124 is approved, participation in the Washington Cares program would become optional, essentially leading to its demise.
Funded by hedge fund manager Brian Heywood and supported by prominent state Republicans, this initiative is the most recent conservative effort to dismantle the program.
During the previous summer, Washington started implementing a 0.58 percent payroll tax to support the program.
The maximum benefit will be $36,500, adjusted for inflation, beginning in 2026. An average income worker in the state pays approximately $400 in taxes each year. Forbes.com estimates the average salary to be around $72,000.
Washington Cares Debate: Opponents and Supporters Clash
Heywood’s group, Let’s Go Washington, presents numerous arguments against the public program.
According to some, the benefit is insufficient and the tax is excessive. However, they strongly believe that workers should not be compelled to take part in the program.
This initiative faces opposition from an unusual alliance of consumer groups, including the state chapter of AARP, long-term care providers, and unions.
According to Washington Cares, it enables all residents of Washington to access the necessary long-term care when required.
The success of the initiative hinges on the backing of low- and moderate-income workers, who stand to gain the most from the public program.
High-income workers have the most significant motivation to repeal the plan. Due to the uncapped payroll tax, individuals end up paying significantly more for the same benefit.
However, in 2021, many managed to avoid the tax by taking advantage of a legal loophole and purchasing private insurance.
Workers or self-employed individuals can choose to leave the insurance program whenever they want.
Heywood’s team emphasizes that this simply allows workers to decide whether or not to take part.
However, the financial truth is that despite its appeal, voluntary long-term care insurance is destined for failure.
