The WA Cares Rate Explained
Washington's Long-Term Services and Supports (LTSS) Trust Act, known as the WA Cares Fund, is the nation's first public long-term care insurance program. It is funded by employee premiums. The premium rate is a flat 0.58% of gross wages, meaning 58 cents is contributed for every $100 earned.
Unlike Social Security, there is no annual wage cap on the WA Cares premium. The deduction applies to all gross wages, including salary, hourly pay, bonuses, and cashed-out paid time off. Premium collection began on July 1, 2023, with employees paying the premium. Employers are responsible for withholding and remitting the premiums but do not contribute to the program unless they choose to pay some or all of their employees' share.
How the Premium is Calculated
The WA Cares premium is calculated by multiplying your gross wages for a pay period by 0.0058 (0.58%). For example, gross wages of $2,000 would result in an $11.60 deduction ($2,000 x 0.0058). The Employment Security Department (ESD) offers a premium calculator online to estimate deductions for both WA Cares and Paid Family and Medical Leave (PFML).
Understanding the Benefits
Eligible workers contributing to the fund can access a lifetime benefit for long-term care services, available starting July 1, 2026. The current lifetime benefit is up to $36,500, which will be adjusted annually for inflation.
Covered Services
The WA Cares benefit covers a range of services for care at home or in residential settings, including:
- In-home caregivers
- Residential care in assisted living or nursing homes
- Home modifications
- Home-delivered meals
- Transportation
- Mobility and assistive devices
- Care supplies
- Caregiver support services
Eligibility Requirements
Benefit eligibility requires both a contribution history and a demonstrated care need. You must have contributed for at least 10 years (500+ hours/year) without a five-year gap, or for three of the last six years when applying. The Department of Social and Health Services (DSHS) must determine a need for assistance with at least three 'Activities of Daily Living' (ADLs).
Who Contributes and Who is Exempt
All W-2 employees in Washington contribute unless they have an approved exemption. Self-employed individuals can voluntarily opt-in. Federal employees, tribal employees (unless the tribe opts in), and retirees are not required to contribute.
Exemptions Explained
Since 2022, specific groups have been eligible for ongoing exemptions, including:
- Veterans with a 70% or higher service-connected disability rating
- Workers residing outside Washington State (conditional exemption)
- Spouses/domestic partners of active-duty military (conditional exemption)
- Temporary workers on non-immigrant visas (conditional exemption)
Note that the one-time exemption for those with private long-term care insurance before November 1, 2021, is closed.
WA Cares Compared to Other Long-Term Care Options
| Feature | WA Cares Fund | Private LTC Insurance | Medicaid | Medicare |
|---|---|---|---|---|
| Funding Source | Mandatory employee payroll deduction (0.58%). | Individual purchases policy. | Federal and state funds for low-income. | Federal tax payments. |
| Cost | Fixed rate, affordable. | Often expensive, premiums increase. | Free or low-cost for eligible. | Monthly premiums and deductibles. |
| Coverage Limits | Lifetime maximum $36,500 (adjusted). | Varies by policy, can offer higher amounts. | Covers most care needs after spending down assets. | Limited; short-term skilled nursing only. |
| Underwriting | No underwriting based on health. | Requires underwriting; pre-existing conditions affect cost/coverage. | Requires meeting financial and medical eligibility. | Guaranteed for eligible populations. |
The Future of the WA Cares Fund
After surviving a ballot initiative challenge, the WA Cares Fund saw a new law in 2024 making benefits portable for eligible workers moving out of state. The program is managed by DSHS, ESD, and the Health Care Authority, with oversight from the LTSS Trust Commission. While the fund is projected to be solvent through 2098, the rate requires legislative approval to change.
Stay informed about the fund's status and legislation by visiting the official WA Cares Fund website.
Conclusion
The WA Cares rate of 0.58% is a mandatory payroll deduction for Washington employees, providing access to a state long-term care benefit. Contributing to this fund allows individuals to earn coverage for a variety of services as they age or become disabled. Understanding the rate, its calculation, and the program's benefits is essential for effective financial and long-term care planning.
