issue area reports | health care
Health Care
Amy Anderson ; Health Care & Federal Issues
The beginning of the 2022 legislative session focused on the WA Cares fund , the state program , funded by a payroll tax , that provides long-term care services for Washington state residents . Legislative action on the WA Cares fund during the 2021 legislative session created a situation that limited residents ’ ability to purchase private long-term care products on the open market and force them on to the state program that provides a limited one-time $ 36,500 benefit , while charging a payroll tax for all Washington employees .
In August 2021 , AWB , along with 165 businesses , organizations and labor unions , sent a letter to the governor , asking him to convene bipartisan legislative leadership to discuss putting a pause on collection of the long-term care payroll tax that was set to begin Jan . 1 , 2022 . On Dec . 17 , 2021 , Gov . Jay Inslee , Senate Majority Leader Andy Billig and House Speaker Laurie Jinkins released a statement delaying the Washington Cares Fund premium assessment . They wrote :
“[ T ] he state will not collect those funds until the Legislature sorts through these issues . While legislation is under consideration to pause the withholding of LTC fees , employers will not be subject to penalties and interest for not withholding fees from employees ’ wages during this transition .”
Billig and Jinkins also said that , “ In addition to delaying the premium assessment , we also support employers pausing premium collections from employees in Washington so lawmakers can take necessary action . While we cannot direct employers not to collect , we strongly encourage them to pause on collecting premiums from employees , giving us time to pass legislation extending implementation dates until next year .”
The assurances provided by the governor and legislative leadership that employers will not be responsible for paying the premiums were inadequate to protect employers from liability . This necessitated legislative action in the 2022 session . Legislative leadership stated that codifying the delay in implementation was a priority and they stuck to that , passing both bills in late January .
SHB 1732 delaying the implementation of the long-term services and supports trust program by 18 months
Passed / AWB Supported
Substitute House Bill 1732 , introduced by Rep . Pat Sullivan , D-Covington , delays implementation of several parts of the
Long-Term Services and Supports Trust Program ( WA Cares ). Collection of the payroll tax for the program is delayed by 18 months , from Jan . 1 , 2022 , until July 1 , 2023 . The availability of approved services under the WA Cares program is delayed by 18 months from Jan . 1 , 2025 , until July 1 , 2026 . Premiums collected from employees before July 1 , 2023 , must be refunded to the employee within 120 days of collection by the employer or by the Employment Security Department through the employer . The bill also expanded eligibility to near-term retirees by providing persons born before Jan . 1 , 1968 , who do not pay the premium for the required 10 years needed to become vested in the full number of benefit units may receive partial benefits under the Trust Program . For each year that persons in this population make the premium payments for the minimum 500 hours , they may receive 10 percent of the maximum number of benefit units .
Bill considered as part of AWB ’ s voting record
Favorable outcome for Washington businesses
Missed Opportunities
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