Federal Judge Upholds Washington Cares Fund

by | Apr 27, 2022 | LTCi Info Articles

A federal judge, on Monday, upheld the right of the state of Washington to continue the Washington Cares Fund (also known as the Washington Long-Term Care Trust Act or Long-Term Services and Supports Trust Program).

Last November, a lawsuit was filed to stop the WA Cares Fund. The lawsuit claimed that the WA Cares Fund violated federal law under ERISA (The Employee Retirement Income Security Act of 1974). 

The judge ruled that since the Washington Cares Fund “is not established or maintained by an employer and/or employee organization, it is not an employee benefit plan and it is not governed by ERISA.” (see Page 5, Line 21 through Page 6, Line 2)

This ruling allows the state of Washington to continue to implement the program.
Payroll deductions will begin on July, 2023.

Over 450,000 Washingtonians opted out of the program by purchasing private long-term care insurance before the deadline set by the law, November 1st, 2021. The WA Cares Fund Trust Commission has until December 31, 2022, to create rules for verifying “that those who have opted out of the program maintain their private (LTC) insurance policies.”

The Trust Commission has recommended:

  1. a) the ESD be authorized to “withdraw approval of an exemption if an individual fails to re-attest and provide adequate proof of LTC insurance when requested”. (pg. 11 of Trust Commission Report)
  2. b) “The withdrawal of an exemption approval should require an individual to participate in the program as required for any other employee in Washington.” (pg. 12 of Trust Commission Report)
There are five types of workers who can opt-out of the program:
  1. Anyone who owns long-term care insurance purchased before November 1st, 2021
  2. Anyone who works in Washington but resides in another state
  3. Spouses of military stationed in Washington 
  4. Disabled veterans (70% level of disability or greater)
  5. Anyone working in Washington with a temporary visa
There are two types of workers who are automatically exempt:
  1. Federal employees and 
  2. Tribal governments

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