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🏛️ '''WA Cares Fund''' is Washington State's publicly administered [[Definition:Long-term care insurance | long-term care insurance]] program, established under the Long-Term Services and Supports (LTSS) Trust Act of 2019 — the first state-level social insurance program in the United States dedicated to funding long-term care benefits. The program is financed through a mandatory [[Definition:Payroll tax | payroll tax]] on most W-2 employees working in Washington and provides a lifetime benefit of up to $36,500 (indexed for inflation) that eligible residents can use for a range of qualified long-term care services, from in-home assistance to [[Definition:Assisted living | assisted living]] facility care.

⚙️ Participation is automatic for nearly all Washington employees unless they obtained an approved exemption by demonstrating they already held qualifying private [[Definition:Long-term care insurance | long-term care]] coverage before the program's opt-out deadline. The fund collects a premium assessment — currently 0.58 percent of gross wages with no cap — deducted by employers each pay period and remitted to the state. To access benefits, a participant must have paid into the system for a minimum number of qualifying years, be a Washington resident when claiming, and meet functional criteria demonstrating a need for assistance with at least three activities of daily living. The [[Definition:Washington State Employment Security Department | Employment Security Department]] administers collections while the [[Definition:Department of Social and Health Services (DSHS) | Department of Social and Health Services]] manages benefit eligibility and disbursement.

💡 The WA Cares Fund carries significant implications for the private insurance market. When the program was announced, demand for individual long-term care policies surged as workers rushed to secure exemptions, straining [[Definition:Underwriting | underwriting]] capacity and prompting several carriers to temporarily halt new applications in the state. Over the longer term, the program may reshape how insurers design supplemental long-term care products — creating opportunities for gap coverage that tops up the state benefit. For employers, the fund adds a new compliance dimension to [[Definition:Payroll deduction | payroll]] and benefits administration, and for the broader industry it serves as a test case that other states are watching closely as they grapple with the nationwide long-term care funding crisis.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Long-term care insurance]]
* [[Definition:Social insurance]]
* [[Definition:Payroll tax]]
* [[Definition:Activities of daily living (ADL)]]
* [[Definition:Supplemental insurance]]
* [[Definition:State insurance regulation]]
{{Div col end}}

Definition:WA Cares Fund - Revision history

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