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It is currently Fri Apr 19, 2024 7:03 am
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Great New WA State Tax... um... Insurance!
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jukk0u
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Location: Lynnwood and at large Joined: Wed May 1, 2013 Posts: 21268
Real Name: Vick Lagina
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From a money guy I know:
Incoming WA State LTC Tax
WA State is pushing through the legislature a state provided Long Term Care Insurance Policy to augment the average person being unprepared to afford expected Long Term Care costs. As of this email, this is all tentative until approved.
How does this apply to you? Additional Taxes
If you get paid a W-2 wage in Washington State, to pay for this, your income taxes are going up by 0.58%. For example, if you make $500k/yr that’s $2900/yr in taxes.
Opting Out
You will have the option to opt out of this additional tax, but only if you possess a privately-owned Long-Term Care Insurance policy by July 24th, 2021. If you are a client that currently does not have a privately owned Long-Term Care policy, you will need to be approved and accept a policy by this date. From a backwards planning perspective, I would plan to have an application into the insurance companies by the end of this month.
Public Option Policy Description
The WA State Long Term Care policy will provide each eligible person $36,500 in available benefits (aka benefit pool) for those experiencing a Long-Term Care Event. This is the result of $100/day of benefit reimbursements provided for 365 days. The benefit pool does not refill, and the pool is expected to increase with the costs of health care.
Should you buy private Long Term Care Insurance?
From our analysis on prevailing Long Term Care costs out there, “opting out” by purchasing private Long-Term Care will be financially advantageous if you fit the following criteria:
- Live in or will live in WA State
- Are in Good Health
- Are more than 9 years out from retirement
- Are currently being paid via W-2 (or will be in the future)
- Are a female that currently makes over $128k/yr (or will in the future)
- Are a male that currently makes over $78k/yr (or will in the future)
_________________ “Finding ‘common ground’ with the thinking of evil men is a fool’s errand” ~ Herschel Smith
"The said Constitution shall never be construed to authorize Congress to prevent the people of the United States who are peaceable citizens from keeping their own arms." ~ Samuel Adams
“A return to First Principles in a Republic is sometimes caused by simple virtues of a single man. His good example has such an influence that the good men strive to imitate him, and the wicked are ashamed to lead a life so contrary to his example. Before all else, be armed!” ~ Niccolo Machiavelli
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FJB
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Sat Apr 10, 2021 8:15 pm |
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RocketScott
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Location: Kentucky Joined: Fri Jan 16, 2015 Posts: 11088
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So...
Now WA is a good state to retire to?
Seriously, I'll move back when it's time for me to go into a facility if the state is paying for it*
*If I make it that long. I'll be senile and most places don't put up with jacking off in front of nurses (trust me)
_________________ You may be right, I may be crazy, but it just may be a lunatic you're looking for
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Sat Apr 10, 2021 8:28 pm |
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mmalleck
Site Supporter
Location: Bellevue area - WA Joined: Wed Jan 9, 2013 Posts: 1435
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The long term care insurance quotes I got were kind of crazy.
Pacific Life $8,739 per year Lincoln Financial Group $12,240 per year John Hancock $9,598 per year
All had $250K death benefit. But, holy crap, I need to shop around, or just pay the penalty.
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Sat Apr 10, 2021 8:57 pm |
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stompah
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Location: Renton Joined: Sat Mar 21, 2015 Posts: 2163
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Interesting. The radio says we can get better coverage for cheaper than what the state will charge us.
_________________ Reloading is easy, it's growing back fingers that's tough.
Studying for my Liberal Arts degree at Evergreen College.
YouTube taught me, just like everybody else.
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Sat Apr 10, 2021 9:05 pm |
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surevaliance
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Location: AZ Joined: Fri Aug 17, 2018 Posts: 6793
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Having my diaper changed once a week? Thanks, but No!
_________________ FPC member GOA member Corruptissima re publica plurimae leges.
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Sat Apr 10, 2021 9:06 pm |
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NWGunner
Site Supporter
Location: South Seattle Joined: Thu May 2, 2013 Posts: 12475
Real Name: Steve
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jukk0u wrote: From a money guy I know:
Incoming WA State LTC Tax
Public Option Policy Description:
The WA State Long Term Care policy will provide each eligible person $36,500 in available benefits (aka benefit pool) for those experiencing a Long-Term Care Event....
This is the result of $100/day of benefit reimbursements provided for 365 days...
This is complete bullshit, even for reasons other than the obvious... This is just a money-grab to stash a ton of money in the coffers, Re-invest, & make money... I’ve both had family in LTC, and have friends that currently work in it....neither $36,500, nor $100/day will cover shit. Most places won’t even consider your application for such a small amount. So what, now build ‘state-run’ facilities (for more tax money, and worse care? Typical ‘sounds good without actually considering the unintended consequences’... Oh, but if it doesn’t work, we’ll just raise taxes...
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Sat Apr 10, 2021 9:26 pm |
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Hal O'Peridol
Location: bellingham Joined: Wed Aug 16, 2017 Posts: 759
Real Name: Mark
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mmalleck wrote: The long term care insurance quotes I got were kind of crazy.
Pacific Life $8,739 per year Lincoln Financial Group $12,240 per year John Hancock $9,598 per year
All had $250K death benefit. But, holy crap, I need to shop around, or just pay the penalty. Stay away from Lincoln. I had disability insurance with them through my employer. They will do everthing they can to avoid paying anything. I can bearly read and write, with short term memory problems after my stroke, but they insisted I could return to work.....as a Registered nurse.
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Sat Apr 10, 2021 9:38 pm |
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mmalleck
Site Supporter
Location: Bellevue area - WA Joined: Wed Jan 9, 2013 Posts: 1435
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Hal O'Peridol wrote: mmalleck wrote: The long term care insurance quotes I got were kind of crazy.
Pacific Life $8,739 per year Lincoln Financial Group $12,240 per year John Hancock $9,598 per year
All had $250K death benefit. But, holy crap, I need to shop around, or just pay the penalty. Stay away from Lincoln. I had disability insurance with them through my employer. They will do everthing they can to avoid paying anything. I can bearly read and write, with short term memory problems after my stroke, but they insisted I could return to work.....as a Registered nurse. Thank you. I haven't made any decisions, but this helps cross one off the list. I'm sorry they fought you on your claim.
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Sat Apr 10, 2021 9:58 pm |
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Chains
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Location: Marysville Joined: Tue Jul 31, 2012 Posts: 1261
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So, using the formula in the OP, it’ll cost me North of $750
Assuming MMallecks numbers are even close to what my quotes will be, this looks intentionally low-balled. Meaning if given the choice of paying thousands for an additional policy, or just sucking up and paying the “penalty/tax”, many many people will just have to play ball being unable to afford to “Opt Out”
Fucking dicks with their hands in my pockets, again.
_________________ If it has Tits, An Engine, or a Point of Ignition, I'll probably be willing to have a look.
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Sat Apr 10, 2021 10:08 pm |
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scorpion rider
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Location: 40 acres of 2A sanctuary Joined: Sun Apr 7, 2013 Posts: 919
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I was listening to an interview about this very thing today on the radio and the stats show that 2/3 of people that go into long term care die in the first year.
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Sat Apr 10, 2021 10:51 pm |
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NWGunner
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Location: South Seattle Joined: Thu May 2, 2013 Posts: 12475
Real Name: Steve
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scorpion rider wrote: I was listening to an interview about this very thing today on the radio and the stats show that 2/3 of people that go into long term care die in the first year. Do you have a reference or link for that? That’s definitely true for Hospice Care (by definition), but not LTC, in my experience.
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Sat Apr 10, 2021 10:56 pm |
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RocketScott
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Location: Kentucky Joined: Fri Jan 16, 2015 Posts: 11088
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Just to get some outside sources involved... Washington State Long Term Care Trust Acthttps://www.ltc-associates.com/education-center/who-pays-for-long-term-care/public-programs/washington-state-long-term-care-trust-act/#gs.xxkcrnQuote: How Can You Opt-Out of the Tax?
If you are an adult employee, there is only one way to permanently opt-out of the LTSS Trust Program and its new career-spanning payroll tax: you must have purchased long-term care insurance before the end of July, 2021.
For details on opt-out rules currently in development, please see our dedicated page on the subject.
To compare your private alternatives to the Trust Program, please inquire here. Quote: Is it a good deal?
According to the outside actuarial firm contracted by the state to review the Trust Program, approximately 45% of state residents (representing 75% of our wage base) could receive comparable coverage on the private market for equal or less money.
_________________ You may be right, I may be crazy, but it just may be a lunatic you're looking for
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Sat Apr 10, 2021 11:03 pm |
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RocketScott
Site Supporter
Location: Kentucky Joined: Fri Jan 16, 2015 Posts: 11088
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NWGunner wrote: scorpion rider wrote: I was listening to an interview about this very thing today on the radio and the stats show that 2/3 of people that go into long term care die in the first year. Do you have a reference or link for that? That’s definitely true for Hospice Care (by definition), but not LTC, in my experience. That sounds surprisingly high to me as well The state bastardizes definitions though, so 'long term care' could include a variety of things
_________________ You may be right, I may be crazy, but it just may be a lunatic you're looking for
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Sat Apr 10, 2021 11:07 pm |
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NWGunner
Site Supporter
Location: South Seattle Joined: Thu May 2, 2013 Posts: 12475
Real Name: Steve
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jukk0u wrote: From a money guy I know:
Incoming WA State LTC Tax
WA State is pushing through the legislature a state provided Long Term Care Insurance Policy...
Opting Out
You will have the option to opt out of this additional tax, but only if you possess a privately-owned Long-Term Care Insurance policy by July 24th, 2021. If you are a client that currently does not have a privately owned Long-Term Care policy, you will need to be approved and accept a policy by this date. From a backwards planning perspective, I would plan to have an application into the insurance companies by the end of this month.
May I ask who this ‘money guy’ is? It seems a bit strange to have a date we must have the policy by, before the legislation has even been passed.
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Sun Apr 11, 2021 12:48 am |
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vic_b
Site Supporter
Location: Maple valley Joined: Thu Oct 27, 2011 Posts: 3528
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They've been wanting a state income for awhile now. This is their back door way to get it.
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Sun Apr 11, 2021 2:15 am |
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