This year, Washington state voters will have the historic opportunity to vote on four initiatives at the top of their ballot. One of those initiatives, Initiative 2124, would give workers the ability to opt out of the state’s long-term care payroll tax and program, WA Cares.
A “no” vote against I-2124 keeps the long-term care payroll tax program mandatory for all Washington workers whether you want the state plan or not.
A “yes” vote in favor of I-2124 keeps the program but creates a permanent opt-out option. It allows Washington workers to either stay in the program and pay the tax or opt out of the program and find alternatives that better address their needs.
Workers in Washington are currently taxed 58 cents for every $100 earned for this mandatory state long-term care program. In return for paying the tax, Washington workers are eligible for $36,500 worth of total long-term care benefits. This includes in-home or nursing care if the need arises. The benefit is called “long-term,” but many experts consider the benefit to be short-term because of its limited value.
Of particular note, benefits are not transferable to a spouse or family member. If the taxpayer does not need long-term care, all the payments are lost and there are no refunds. This means if a stay-at-home parent needs long-term care or care due to an illness, a working spouse is unable to share any earned benefits in the state program.
In addition, the eligibility for benefits is restrictive. Although a Washington worker pays the tax from the first day of employment, eligibility for benefits only begins:
This excludes many working parents who take time off to raise children, seniors working part-time jobs and second-career workers.
The voters are very aware of this program’s faults and limitations. In 2019, nearly 63% of voters opposed the long-term care payroll tax program on the general election ballot. In 2022, almost 500,000 workers opted out of the program while an opt-out window was still open. In 2024, almost 400,000 voters signed the I-2124 petition to allow the opt-out issue to go before voters this November.
Supporting I-2124 does not ignore the importance of long-term care planning. Supporting I-2124 simply recognizes that a mandatory state payroll-tax program is not flexible enough to meet the needs of every worker and every family. Washington workers deserve a choice to stay in the WA Cares program or seek better alternatives.
Many workers that chose to opt-out of WA Cares purchased long-term care plans or purchased a long-term care rider on a life-insurance policy. Others may have used other savings or investment strategies. Some workers may have stayed in the program. However, the choice to opt-out is closed for all of us unless I-2124 passes.
Rather than force workers into an inadequate and unfair cookie-cutter state payroll tax plan, Washington should work with the insurance industry on more flexible and affordable plans, reduce over-regulation of the market, and educate the public about long-term care benefits.
I recommend voting “yes” on I-2124 because Washington workers deserve to choose how they plan for their long-term care needs.
State Rep. Peter Abbarno, R-Centralia, is an attorney who represents the 20th Legislative District in the state Legislature.
